Paris -- French retailing giant Carrefour has joined an investment group aiming to acquire more than a 100 shopping malls in France, Spain, and Italy.
According to a New York Times report, the $2.7 billion deal will add 127 malls to Carrefour’s current 45-mall portfolio. The plan is to create a new, separate property company in which Carrefour would hold a 42% stake. Institutional investors would hold the rest.
The combined entity would operate about 8.6 million sq. ft. of space generating an anticipated $250 million of gross rental income per year, according to the report.
The acquisition is the first big strategic move under Carrefour CEO Georges Plassat, who replaced Lars Olofsson in 2012.
The transaction, which is still subject to approval from French regulators and labor unions, is expected to be completed by mid-2014.