BOISE, ID - This week, Albertsons Companies informed the Securities and Exchange Commission that it had completed the sale of five distribution centers to “an unaffiliated entity” as part of a sale-leaseback deal set to net the company $660 million.
“Pursuant to the related sale agreements and upon the closing of the sale of the properties, the company entered into lease agreements with the purchaser for each of the distribution centers for initial terms of 15 to 20 years and multiple options to extend the terms of the leases,” an SEC filing registered by Robert Gordon, EVP, General Counsel and Secretary, filed on behalf of Albertsons, read. “The aggregate initial annual rent payment for the properties will be approximately $38 million and includes 1.50% to 1.75% annual rent increases over the initial lease terms.”
A similar deal came to fruition in August of last year when Albertsons completed the sale and leaseback of two distribution centers for an aggregate purchase price, net of closing costs, of approximately $290 million.
“We are energized and enthusiastic about our company and our ability to generate free cash flow and delever our balance sheet,” CEO Jim Donald noted in October of 2018. “The team continues to innovate through our digital engagement with customers in both the four-wall and no-wall environment…through the automation of our distribution centers which we believe will deliver strong returns going forward.”
What will the retailer do with the capital it’s freed up? AndNowUKnow will continue to report with updates.
