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Albertsons to Sell, Lease Back 71 US Stores for $720 Million

Undisclosed Buyer Will Lease Stores Back to Grocery Chain
October 3, 2017
Albertsons Cos. has entered into an agreement to sell and lease back 71 of its stores to a Delaware-based limited-liability entity in a transaction intended to raise up to $720 million.

C.F. Albert LLC will purchase the properties and lease each one back for an initial term of 20 years, with Albertsons reserving eight options for five-year lease renewals, according to a filing by Albertsons with the U.S. Securities and Exchange Commission.

The company expects the sale-leaseback of the properties, subject to customary closing conditions, will close by Dec. 2.

The filing does not include a list of the properties involved in the sale leaseback agreement, but lists 15 different selling entities connected with a series of large food and drugstore chains, including Safeway, Jewel, Randall's, Vons, Dominick's and Wildcat.

Sales-leasebacks have in recent years been a popular vehicle for grocery chains and other holders of net-lease properties to monetize their owned-store portfolios.

In 2010, Cole Credit Property Trust III Inc. purchased Albertson's interest in 33 retail properties comprising 1.9 million square feet throughout the U.S. for $276 million.
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