Pep Boys to sell 34 properties for $166.2M

PHILADELPHIA The Pep Boys today announced that it is selling 34 properties for an aggregate purchase price of $166.2 million.

Immediately following the close of the sales, the company said it intends to lease such properties back to be operated as Pep Boys stores, for a lease term of 15 years, with four five-year options.

The sale is expected to close before the end of November. Pep Boys said it expects to utilize the sale proceeds to repay indebtedness.

Harry Yanowitz, cfo, said, "We are pleased to announce this transaction, which represents the first step in our efforts to monetize our real estate assets and lighten our balance sheet."

Pep Boys has 592 stores and more than 6,000 service bays in 36 states and Puerto Rico.