Retail giant Carrefour has announced it is selling the entire share capital of Cargo Property Assets, which manages part of its logistics real estate in France, to property firm Argan.
Cargo Property Assets was founded in 2016, and is 32% owned by Carrefour alongside co-investor partners.
It operates about one third of the group's distribution centres throughout France, with Carrefour overseeing the management of the business.
Carrefour 2022
Commenting on the sale, Carrefour said in a statement, 'This operation will contribute to achieving the objective of the Carrefour 2022 plan of divesting €500 million of non-strategic real estate assets.'
The transaction would be based on a valuation of the real estate assets held by Cargo Property Assets of €900 million, transfer tax included, the group said.
As part of the deal, Carrefour is expected to receive remuneration equivalent to about €290 million, 80% of which will be in cash, and 20% in Argan stock. Carrefour will hold around 5% of Argan's share capital.
The completion of the transaction is subject to the approval of Argan shareholders and other customary conditions. It is expected to be effective by the end of 2019, Carrefour said.
Argan is a listed property company specialising in logistics real estate and the development and leading of warehouses. Its 60 warehouses in France cover approximately 1.7 million square metres, and have a valuation of €1.7 billion.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
