Aloha Petroleum
buys 20 gas stations

The company says
the buy will improve
its competitive position

Aloha Petroleum Inc. is purchasing 20 gasoline stations and convenience stores that operate under the Mahalo brand in a major expansion of its retail gasoline business, the company said.

Aloha Petroleum said yesterday it has reached an agreement for the stations with Dallas-based U.S. Restaurant Properties Inc. in a deal that's expected to close by the end of June.

Terms of the transaction were not disclosed.

Bob Maynard, Aloha Petroleum's president, said the deal will increase the company's competitive position on Oahu and the Big Island, where it operates in about 60 locations.

"This transaction will allow Aloha to further our objective of providing the best value in gasoline and convenience store products to the Oahu consumer," Maynard said.

Robert Stetson, U.S. Restaurant's chief executive, said the deal will allow his company to return to its preferred role as a landlord. U.S. Restaurant said that it will continue to own the fee interest in 11 of the stations, which will be leased to Aloha Petroleum.

U.S. Restaurant, a real estate investment trust, has been trying to sell most of its Hawaii stations after the previous station operators, BC Oil Ventures, filed for bankruptcy protection in 2000. BC Oil had operated in Hawaii under the Arco brand.

Meanwhile, U.S. Restaurant is merging with CNL Restaurant Properties Inc. and 18 CNL Income Funds. CNL, which is based in Orlando, Fla., is a major landlord for national fast-food chains such as Jack in the Box and Wendy's.

Aloha Petroleum, which traces its history to the early 1900s, is a locally based gasoline wholesaler and retailer.