French retailer Casino Group is exercising its option to buy back a 70% stake in two retail assets in France from Schroder European Real Estate Investment Trust Plc for €44.8 million, reflecting a 10% premium to the properties' current valuation.
The U.K.-based real estate investor purchased the 70% stake in the grocery retail assets in Biarritz and Anglet in June 2016 through a joint venture, with Casino Group subsidiary Mercialys retaining a 30% stake.
The French retailer will assume Schroder European REIT's €18.2 million share of the existing debt facility on the assets. The REIT expects the sale, slated to close July 31, to generate net equity proceeds of about €26.6 million.
