GE Real Estate and Heitman are seen as front runners in contest for portfolio of 18 hypermarkets being sold by French chain Géant, which could raise up to €600m
French retailer Casino is selling a portfolio of 18 Géant hypermarkets in Poland, which could raise more than €600m, according to market observers.
GE Real Estate and Heitman already own a stake in the portfolio, which has deterred some investors as they believe this puts those two investors at an advantage. But Casino has received dozens of bids.
Casino entered the Polish market with its Géant hypermarket format in the second half of the 1990s. Competition in the sector intensified in 2001, when Germany’s Kaufland entered the market. Kaufland now has 67 Polish hypermarkets, but their smaller scale – an average 3,700m², compared with 10,700m² for Géant stores – allows the German chain to get a quicker return on investments.
Casino has had a tough time in Poland, where it also operates a discount store chain. Same-store-sales dropped 5.4% last year and 2.3% in the first quarter this year. Casino has been struggling in France too.
In March, Casino announced an asset disposal programme to raise €2bn by the end of 2007 and strengthen the company’s balance sheet. The company’s debts totalled €5.4bn at the end of 2005. Cushman & Wakefield is advising Casino on the sale.
Meanwhile, GE Real Estate and Quinlan Private are to gain complete ownership of Bulgaria’s Mall of Sofia by acquiring a 50% stake from Israeli developer AVIV and cinema operator CCI once the scheme is completed.
GE and Quinlan bought a 50% stake for €37m in August 2005; the 33,500m² scheme is expected to be worth €90m on completion.
