French hypermarket chain Carrefour has said it will proceed with the sale of €1.5bn of property at the end of this year.
The company confirmed its plans in its 2007 annual report, released this month.
Carrefour also intends to list a €3bn Carrefour Property entity in 2009. The French chain will keep an 80%-stake in the new property vehicle.
Carrefour was believed to have taken the decision to list its assets in September last year following pressure from investors including French billionaire Bernard Arnault. The idea had previously been considered in 2004.
“We regard property as a strategic asset at the heart of our customer relationships and the creation of value,” a company statement said.
Carrefour’s rival, Casino, is also considering a move to take advantage of its property, having considered the €650m sale-and-leaseback of a large chunk of its French portfolio last year.
Casino to hold minority stake
If the chain did go ahead with such a move, around 170,000m2 of assets would be sold or moved to a new vehicle in which Casino would hold a minority stake.
Around 250 convenience stores and supermarkets stores would be sold to raise capital for further overseas expansion.
Carrefour reported a 1.3% year-on-year increase in net profits in its 2007 results. Net sales were up by 6.8% to €82bn, with the 50-year-old company returning a dividend of €1.08 per share.
France’s contribution to Carrefour’s revenue in 2007 was down by 5.7% compared to the previous year. But Asia and Latin America showed double-digit revenue growth, 27.6% and 86.5% respectively.
The company, which has recently targeted Brazil and Poland, employs 500,000 staff globally.
