In a surprising turn of events, French retail giant Groupe Casino has announced that it is in exclusive negotiations to sell its real estate subsidiary Codim 2. This move comes as Groupe Casino looks to streamline its operations and focus on its core retail business.
Codim 2 is a major player in the French real estate market, with a portfolio of over 6 million square meters of commercial property. The subsidiary owns and manages a diverse range of assets, including shopping centers, office buildings, and logistic warehouses.
The potential buyer of Codim 2 has not been disclosed, but industry insiders speculate that it could be a major real estate investment firm or a private equity group looking to capitalize on the strong performance of the French real estate market.
The sale of Codim 2 could fetch Groupe Casino a substantial sum, with analysts estimating the value of the subsidiary at over €1 billion. This influx of funds would provide much-needed liquidity for Groupe Casino, which has been grappling with a heavy debt load in recent years.
The decision to sell Codim 2 marks a significant shift in strategy for Groupe Casino, which has historically focused on expanding its retail footprint through acquisitions and partnerships. By divesting its real estate assets, the company is signaling a new direction for its future growth.
Groupe Casino’s CEO, Jean-Charles Naouri, commented on the negotiations, stating that the sale of Codim 2 would allow the company to “unlock value for our shareholders and focus on our core retail operations.” He emphasized that the potential buyer would be a “strong partner” that could help Codim 2 continue to grow and thrive in the competitive real estate market.
Investors have reacted positively to the news, with Groupe Casino’s stock price jumping 5% in early trading. Analysts believe that the sale of Codim 2 could provide a much-needed boost for the company’s balance sheet and help it weather the challenges of the ever-evolving retail landscape.
As negotiations continue, all eyes are on Groupe Casino and the potential buyer of Codim 2. The outcome of this deal could have far-reaching implications for the French retail and real estate sectors, and investors will be watching closely to see how it unfolds.