French Casino group offloads €501m store portfolio

The Casino Group has signed an agreement with funds managed by Fortress Investment Group for the sale of 26 hypermarkets and supermarkets properties worth €501 million ($569 million), of which €392 million ($445 million) will be received in first-half 2019.

Under the agreement, the Casino Group will sell a portfolio of 13 Géant Casino hypermarkets, three Casino hypermarkets and 10 Casino supermarkets properties in the first half of 2019.

Located primarily outside of Paris in the group’s traditional French operating regions, the 26 properties represent €31.8 million ($36.13 million) in annual rent and offer an estimated yield of 5.9 percent, including transfer costs.

Casino will receive approximately 80 percent of the asset value less registration tax, i.e., €392 million ($445 million), on completion of the transaction in the first half of 2019.

Funds managed by Fortress Investment Group will create a specific entity to acquire the portfolio in