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Supervalu Completes Sale And Leaseback Of Seven DCs

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Last updated on March 25th, 2021 at 07:23 pm

Supervalu Inc. has completed the sale and leaseback of seven of its distribution centers as part of its previously announced agreement to sell eight of its owned warehouses. With the sale of these seven facilities now complete, Supervalu has entered into lease agreements for each facility for an initial term of 20 years with five 5-year renewal options. The sale and leaseback of the eighth property is expected to be completed by October as originally intended.

The sale of all eight facilities represents approximately 5.8 million s.f. with an aggregate purchase price, excluding closing costs and taxes, of approximately $483 million. Net proceeds from the sales will be used to reduce outstanding debt including, and as required, the payoff of a mortgage related to one of the properties sold and a mandatory prepayment of Supervalu’s secured term loan. The company also intends to use net proceeds for a partial redemption of its outstanding senior unsecured notes due in 2021.

With annual sales of approximately $14 billion, Supervalu serves customers across the U.S. through a network of 3,437 stores composed of 3,323 wholesale primary stores operated by customers serviced by Supervalu’s food distribution business and 114 traditional retail grocery stores in continuing operations operated under three retail banners in three geographic regions. Headquartered in Minnesota, Supervalu has approximately 23,000 employees.

Keep reading:

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