Casino divests property worth €650mn

French retailer Casino will sell property for €650mn through strategic partnerships. After the sale and leaseback of the retailer’s standard properties like the head office and warehouses, Casino now intends to capitalise on its store property. Therfore it divides its real estate portfolio in two classes: mature and to develop.

Mature proprties are stores that cannot be extended. They will either be sold or transferred via sale and leaseback to a new property vehicle AEW Immocommercial. Casino intends to retain property that offers strong development potential. According to the Wall Street Journal, analysts welcomed the €650mn deal. It would improve Casino’s debt-to-earnings profile, but the impact on the retailer’s operating results would be limited.

Property deals are fashionable among retailers. Carrefour announced a property deal in September and Metro Group is also rumoured as considering property deals. Real estate of Sainsbury’s is known to be an important factor in the ongoing debates regarding a possible takeover of the British retailer.