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Albertsons to raise $720M in store sale-leaseback

71 properties in deal

Jon Springer, Executive Editor

October 2, 2017

1 Min Read
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Albertsons Cos. said Friday it had a made a deal to sell 71 owned stores to a real estate investor and subsequently lease them back.

The deal with CF Albert LLC would raise approximately $720 million, excluding closing costs.

Albertsons said it expects to enter into lease agreements with the purchaser for each of the properties for initial terms of 20 years. Albertsons has eight options for five-year renewals of the terms of the leases, it added.

The deal would allow Albertsons to free up cash in assets but a copy of the sale agreement filed with the Securities and Exchange Commission late last week did not detail the company’s intention for the proceeds. A spokesperson for Albertsons was not immediately available for comment.

The sale agreement lists 15 separate Albertsons entities were sellers including Jewel, Safeway, Acme, Randalls, Dominick’s and Vons. A list of the properties being sold was not included in the filing.

The deal is expected to close before Dec. 2, Albertsons said.

CF Albert is identified as a Delaware-based limited liability company but names and addresses of its representatives are redacted in the sale agreement.

 

About the Author

Jon Springer

Executive Editor

Jon Springer is executive editor of Winsight Grocery Business with responsibility for leading its digital news team. Jon has more than 20 years of experience covering consumer business and retail in New York, including more than 14 years at the Retail/Financial desk at Supermarket News. His previous experience includes covering consumer markets for KPMG’s Insiders; the U.S. beverage industry for Beverage Spectrum; and he was a Senior Editor covering commercial real estate and retail for the International Council of Shopping Centers. Jon began his career as a sports reporter and features editor for the Cecil Whig, a daily newspaper in Elkton, Md. Jon is also the author of two books on baseball. He has a Bachelor of Arts degree in English-Journalism from the University of Delaware. He lives in Brooklyn, N.Y. with his family.

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