Carrefour Brazil has entered into exclusive negotiations with real estate investment and management company, Barzel Properties, for the sale of five distribution centres and five stores owned by the company.
The deal, valued at R$ 1.3 billion (€240 million), is in line with the group’s strategy of maximising operational and financial efficiency based on the continuous review of its real estate assets.
As part of the deal, the assets will be leased back to Carrefour under agreements with 20-year terms, renewable for additional five-year terms, ensuring the continuity of operations, the company said in a statement.
Rent expenses related to these properties will be R$ 10 million (€1.9 million) per month, it added.
In November of 2022, Grupo Carrefour Brasil announced plans to accelerate the expansion of its hybrid wholesale stores in coming years while looking into a carve-out of its real estate business.
At the time, the local unit of French retailer Carrefour SA said in a securities filing that the potential real estate business carve-out could be followed by the sale of a minority stake to a strategic investor.
Carrefour selected Barzel after a bid process, which included several other market players.
The transaction is subject to antitrust approval, negotiation of the definitive agreements and satisfaction of other conditions precedent, Carrefour added.
Carrefour Brazil will commence negotiation with the other bidders should the exclusivity period agreed between Carrefour Brazil and Barzel expire without the closure of the transaction.
Read More: 5 Key Takeaways From Carrefour’s 2022 Full-Year Results
© 2023 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.