Carrefour Brasil Sells Properties

SAO PAULO (Reuters) – Food retailer Carrefour (EPA:CARR) Brasil has agreed to sell 15 properties to a real estate fund for 725 million reais ($127.4 million), it announced on Tuesday.

The Brazilian unit of French retailer Carrefour will then lease back the properties from the fund, Guardian Real Estate, for at least 13 years, ensuring they remain as stores under its primary brand Atacadao, as stated in a securities filing.

Carrefour Brasil expects the deal to close this year, adding it will pay approximately 4.8 million reais per month in rent.

> "The transaction is aligned with Grupo Carrefour Brasil's strategy to unlock value from its real estate portfolio," the firm stated.

Earlier, Valor Economico reported that Carrefour Brasil was in negotiations to sell a total of 65 stores from its Bom Preco and Nacional brands.

According to Valor, Carrefour Brasil hired bank Bradesco BBI to advise on the talks, planning not only to sell stores but also some real estate properties. Carrefour Brasil did not immediately respond to a request for comment outside normal business hours.

SALES GROW

Additionally, Carrefour reported total gross sales of 29.5 billion reais for the quarter ending in September, marking an increase of nearly 5% from the previous year, propelled by an 8% increase in sales at Atacadao stores.

Same-store sales at Atacadao, which operates a hybrid wholesale format, grew almost 6% year-over-year, without adjustments for calendar effects, according to the preliminary sales report.

Carrefour Brasil is expected to release audited third-quarter earnings on Oct. 31.

($1 = 5.6901 reais)