Carrefour Brazil, the Brazilian arm of French retailer Carrefour, is in exclusive discussions with real estate management company Barzel Properties (Barzel).
The talks are regarding selling five distribution centres and five stores for a total of about 1.3bn reais ($262.7m).
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The assets are proposed to be leased back to Carrefour Brazil under 20-year lease agreements with Barzel. The lease agreements will also be renewable for additional five-year terms.
As per the talks, these properties will be leased at a monthly rent of $10m reais ($2.02m).
Carrefour Brazil negotiated with Barzel after selecting it through a competitive bid process, which included several other companies.
In a statement, Carrefour Brazil said: “This sale and leaseback transaction is in line with the Group’s strategy of maximising operational and financial efficiency based on the continuous review of its real estate assets.
“In this context, and considering opportunities observed in the real estate sector, Carrefour decided to monetise assets with a profile focused on distribution and logistics.”
The completion of the transaction is subject to certain conditions, including anti-trust approval and the signing of the definitive agreements.
If the parties fail to close the transaction within the agreed exclusivity period, Carrefour Brazil will enter into negotiations with the other participants in the bidding process.
In November 2022, Reuters reported that Carrefour Brazil will expedite the expansion of its hybrid wholesale stores in the coming years and explore a potential carve-out of its real estate business.
Last month, Carrefour reported a 12% increase in sales on a like-for-like basis (LFL) to €22.07bn ($24.32bn) during the first quarter of 2023.
