Wednesday, March 12, 2008

Kopeyka Seeking $350 Million Sale Leaseback of Store Portfolio in Russia / NAMNEWS - March 10, 2008

Discount grocery Kopeyka is reportedly in talks with several investment funds to sell and leaseback some of its stores, according to a report in local paper RBC Daily, which cited a source at UralSib Financial Corporation, the biggest shareholder in Kopeyka. Kopeyka operated 438 stores, covering 224,000 sq m, as of early 2008.

The report said Kopeyka plans to sell retail space of around 100,000 sq m, in a deal that may be concluded very soon. It added that Troika Dialog's real estate investment fund is one of the potential buyers, which was confirmed by the fund, although it noted that no agreement has been reached.

The paper said the stores Kopeyka plans to sell are estimated at $350m-$450m. It has had to take the decision to generate funds, as the stock market crisis has made it difficult for Kopeyka to offer bonds as it had originally planned. The paper added that the deal could allow Kopeyka to finance its investment programme for 2008, under which it plans to open 130 stores. Sphere: Related Content

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