Splitting off its real estate assets could create one of Latin America’s largest retail-focused property firms.
The local unit of French retailer Carrefour SA said in a security filing that the potential real estate business carve-out could be followed by the sale of a minority stake to a strategic investor.
Carrefour Real Estate currently includes more than 450 assets and as a separate company it would have more than 1.5 billion reais (€290 million) of net operating income.
The company said it expects to have a portfolio of 470 hybrid wholesale stores by 2026, accelerating openings to an average of more than 25 units a year from a pace of about 20 a year since 2018.
Carrefour disclosed its turnaround strategy amid soaring inflation, planning to open more discount stores, and cut costs.
Analysts at JPMorgan said the group’s strategic plan is positive for Carrefour Brasil, noting that its hybrid wholesale format has had the best performance in the industry and been a driver of growth for the Brazilian firm.