Irish retailer Applegreen said on Tuesday afternoon that it has terminated lease negotiations with the Massachusetts Department of Transportation to redevelop 18 highway service plazas, including the 11 along the Mass. Turnpike.
MassDOT originally awarded the lucrative lease to Applegreen in June, but losing bidder Global Partners has waged a media and government relations battle to overturn the bid, and also has a lawsuit pending in Suffolk Superior Court aimed at preventing MassDOT from going forward with the lease.
Applegreen, which is backed by private equity firm Blackstone, indicated in a brief statement that Waltham-based Global’s opposition played a role in the decision to back away at this time.
The company said: “After three months of good faith negotiations, Applegreen and MassDOT have not reached agreement on definitive terms for the redevelopment of 18 motorway service areas in Massachusetts. The open issues have significant implications for the commercial viability of the concession award. These commercial realities have been coupled with costly and continued litigation threats from an opposing bidder that have jeopardized the project’s timeline and financing. In light of these circumstances, Applegreen has terminated ongoing lease discussions.”
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Jon Chesto can be reached at jon.chesto@globe.com. Follow him @jonchesto.