GLENDALE, Calif. – IHOP Corp. announced Tuesday that its Applebee’s unit has entered into an agreement for the sale-leaseback of 187 company-owned restaurant locations.


The company said in a statement that the agreement was reached with a new entity affiliated with Drawbridge Special Opportunities Fund LP; Drawbridge Real Assets Fund LP and various affiliates. Drawbridge funds are an affiliate of Fortress Investment Group, a publicly traded alternative asset manager.


IHOP said that the sale is expected to bring the company $347 million before taxes.


The transaction is expected to close no later than June 16, 2008. The company said the after-tax cash proceeds from the sale-leaseback of these properties are expected to be dedicated toward the pay down of the IHOP’s funded debt.


IHOP has been working to franchise the company-owned Applebee’s locations since purchasing the casual dining chain last year.