French supermarket retailer Casino Group has closed the sale of 26 hypermarkets and supermarkets properties to funds managed by Fortress Investment Group for €501m ($563.5m).
The proposed sale is part of the Casino Group’s target set out in June last year to achieve €1.5bn in non-strategic asset sales to reduce its debt.
Announced in January, the deal covers 13 Géant Casino, three Hyper Casino and ten Supermarkets Casino locations. The supermarket chain has received €392m of the total consideration.
While signing the agreement, Casino mentioned that the funds managed by Fortress Investment Group will set up a new entity to purchase and manage the portfolio.
The new entity is aimed at increasing the value of the portfolio and pursuing the sale on the market under optimum conditions.
In addition, the group will receive a stake in the company incorporated by funds managed by Fortress Investment Group, which it could receive up to an additional €150m for in the next few years based on its performance.
Following this first step, the group is planning to explore measures to further reduce its debt, enhance its profitability, and strengthen its financial profile.
In January, Casino Group also agreed to sell six hypermarkets outside the Paris region to Groupement E Leclerc in a deal valued at €100.5m.
Groupement E Leclerc showed interested in buying the stores following an announcement of sale by Casino.