Brazilian retailer GPA has accomplished a contract to sell close to 17 properties to Brazil Properties, an investment fund, for approximately BRL 1.2 billion (USD 0.23 billion), as stated in a security fling report on Friday.
According to GPA, the properties will be rented via liquid assets and chain Assai for almost two decades. After that, this would be expanded for an extra fifteen years. However, the contract still needs approval from Brazil’s antitrust watchdog, GPA stated.
France’s Casino Guichard-Perrachon regulates GPA and Brazil’s Assai, whilst Brazil Properties is a joint venture collaboration facilitated by local investors led by former Cyrela executive Nessim Sarfati and Singapore’s state investor GIC.
The deal arrives as GPA, formally recognised as Companhia Brasileira de Distribuicao, strives to transform some of its hypermarket stores into liquidity and sell stores to Assai Atacadista.
GPA declared in October 2021 about a BRL 5.2 billion (USD 1.01 billion) deal to sell 71 stores to Assai within such a blueprint.
According to Friday’s report, most of the hyper stores included within the deal’s transaction have already been transferred to Assai, whilst the remainder of the stores are estimated to be handed over by the end of 2022’s first quarter.
Assai estimates to unlock around 50 new fangled stores in 2022. Assai will open ten of these stores in the first half of this year, and forty store conversions will be made to the cash and carry format – with openings estimated for the second half of this year.
The remainder of stores that will be converted will be unlocked by the dawn of the first quarter of 2023, Assai stated. Additionally, Assai indicated its aim to accomplish BRL 100 billion (USD 19.38 billion) in revenue and over 300 operational stores next year.
GPA is a Casino Group firm maintaining a presence throughout Brazil and Uruguay, Argentina, and Colombia via Grupo Éxito.
Through the firm’s multichannel and versatile business model, the firm brings together some of the best known and most worthwhile retail chains and brands like Extra and Pão de Açúcar, Compre Bem, Qualitá, Taeq, Finlandek, and Club des Sommeliers amongst others.
With over 800 stores and as pioneers in food eCommerce in Brazil, the firm strives to deliver its consumers the best shopping and retail experience.
About Assai Atacadista
Assai Atacadista is a self-service wholesale firm in Brazil and one of the biggest employers in the nation. The firm currently possesses 214 stores, housing over 60,000 employees devoted to serving the firm’s consumers – from SME merchants and processors, to end consumers seeking various economic services. It fulfils its mission of delivering to the homes of several Brazilians food and essential commodities.