GPA has settled an arbitral dispute with the real estate arm of Brazilian investment fund Peninsula, the Brazilian food retailer aid in a securities filing, without disclosing terms of the agreement.
The Fundo de Investimento Imobiliario Peninsula initiated arbitration proceedings against GPA, a subsidiary of France's Casino Guichard Perrachon SA, in 2017.
The dispute pertained to long-term leases GPA holds on 60 Peninsula properties, the company said.
'Past Controversies' Resolved
'The settlement agreement reached by GPA and Peninsula resolved past controversies and improved the Contracts, maintaining the long-term leases, with enhanced new rules more adapted to the current market conditions,' GPA said in the securities filing.
Peninsula is the family office of Brazil's Diniz family, which founded GPA, but sold its stake in the company several years ago.
"We are happy that we found a positive solution for all sides and, with that, we are ending the arbitration that was ongoing," Abilio Diniz, the retail tycoon and son of the GPA founder, said in a statement.
GPA's Quarterly Performance
In May, GPA reported a quarterly net loss of 130 million reais (€20.4 million), citing costs related to the acquisition of Colombia's Almacenes Exito SA.
However, the business, which recently announced the spinoff of its Assaí wholesale unit, saw total gross revenue rise by 14% in the quarter to March 2021, with all regions seeing a significant growth in sales due to the pandemic.
Earnings before interest, taxes, depreciation and amortization (EBITDA) rose by 13.3% to 918 million reais.