Grupo Pão de Açúcar will sell 11 stores for BRL 330 million – 06/19/2023 – Market

GPA, owner of the Pão de Açúcar banner, entered into a sale and leaseback operation, that is, a purchase and sale commitment for subsequent leasing, with 11 of its supermarket stores for an unidentified private fund.

The transaction amounts to BRL 330 million, according to a notice to the market released this Monday (19), and the lease contracts will have an initial term of 15 years, with the exception of 3 stores that will be leased with an initial term of 18 years.

GPA said that the operation is part of the plan to reduce the company’s financial leverage throughout 2023 and 2024, which contributes to the “reduction of net debt and reinforcement of its capital structure”.

The company recorded a consolidated net loss of BRL 248 million in the first quarter of this year, after a profit of BRL 1.4 billion in the same period in 2022. The figures include hypermarket activities, a segment that GPA decided to leave, and the Group Éxito, the company’s unit in South American countries that is being segregated.

As part of the leverage reduction plan, GPA also intends to conclude the sale of non-strategic assets, implement operational improvements towards the adjusted Ebitda margin target of 8% to 9% in 2024, reduce excess inventory in stores and sell participation of Grupo Éxito after the ongoing segregation process, according to this Monday’s document.