Carrefour Brasil Expands Hybrid Wholesale, Eyes Real Estate Carve-Out

SAO PAULO (Reuters) – Grupo Carrefour Brasil said on Tuesday it would accelerate the expansion of its hybrid wholesale stores in the coming years while considering divesting itself of its real estate business.

The spin-off of its real estate assets could create one of Latin America’s largest retail-focused real estate companies.

Shares of the company, officially called Atacadao SA, jumped as much as 5% after the announcement, making it one of the biggest gainers in Brazil’s Bovespa stock index, which was nearly flat in morning trading. .

The local unit of French retailer Carrefour SA said in a securities filing that the potential carve-out of the property business could be followed by the sale of a minority stake to a strategic investor.

Carrefour Real Estate currently comprises more than 450 assets and, as a separate company, would have more than 1.5 billion reais ($287 million) in net operating income, he added.

This decision is “in line with the group’s strategy to unlock the value of its assets and accelerate the development of its portfolio,” said Carrefour Brasil.

In a separate filing, the company said it plans to have a portfolio of 470 hybrid (“cash-and-carry”) wholesale stores by 2026, accelerating openings to an average of more than 25 units per year. year from a pace of about 20 a year since 2018.

The move follows plans to expand its core business, the company said.

The news came after the French parent company of Atacadao SA, Europe’s largest food retailer, earlier today unveiled its recovery strategy amid runaway inflation, planning to open more stores. discount and reduce costs.

JPMorgan analysts said the group’s strategic plan was positive for Carrefour Brasil, noting that its hybrid wholesale format has been the best performer in the industry and has been a growth driver for the Brazilian company.

(Reporting by Gabriel Araujo; Editing by Steven Grattan and Susan Fenton)

Copyright 2022 Thomson Reuters.

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