Brazil's Carrefour sells off 15 Atacadao sites for $127 million

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 said 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 so they remain as stores from its primary brand Atacadao, it said in a securities filing.

Carrefour Brasil said it expects the deal to close this year, adding it will pay some 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 said in the statement.

Earlier in the day, newspaper Valor Economico reported, citing sources, that Carrefour Brasil was in talks to sell a total of 65 stores from its Bom Preco and Nacional brands.

According to Valor, Carrefour Brasil had hired bank Bradesco BBI to advise on the talks, and was planning to sell stores as well as some real estate properties.

Carrefour Brasil did not immediately respond to a request for comment outside of normal business hours.

SALES GROW

The company also reported on Tuesday total gross sales of 29.5 billion reais in the quarter ended in September, up nearly 5% from a year earlier, driven by an 8% increase in sales at Atacadao stores.

Same-store sales at Atacadao, which operates a hybrid wholesale format, grew almost 6% from a year earlier, 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)

Source: Investing.com