SUPERVALU agrees to sell, leaseback 8 distribution centers
Following the sale of these facilities, SUPERVALU will continue to own over 13 million square feet of real estate.
SUPERVALU INC., Minneapolis, entered into definitive agreements to sell eight of its owned distribution centers, representing approximately 5.8 million square feet, to a single buyer for approximately $483 million. The distribution centers included in the sale/leaseback program are as follows: Champaign, Ill.; Commerce, Calif.; Green Bay, Wis.; Harrisburg, Pa.; Joliet, Ill.; Oglesby, Ill.; Pompano Beach, Fla.; and Stockton, Calif.
“The completion of these sale leaseback transactions is another positive step in the continued transformation of our business,” says Mark Gross, president and CEO. “By unlocking significant value in a portion of our real estate portfolio, we’re able to meaningfully pay down debt, improve our balance sheet and deliver value to our shareholders. I appreciate the hard work and dedication from our team as we continue to move quickly on a variety of initiatives we believe position us for future success.”
Following the sale of these facilities, SUPERVALU will continue to own over 13 million square feet of real estate.
In addition, the buyer has also agreed to fund an expansion at SUPERVALU’s distribution center in Harrisburg, Pa., one of the facilities included in the sale and leaseback, for $20 million. The expansion will help support the growth of SUPERVALU’s wholesale business and broaden the availability of its Market Centre products across the network.
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