Canadian retail giant Loblaw is to spin off and float its real estate assets to provide it with capital to expand.
Loblaw said today (6 December) it would set up a Real Estate Investment Trust and sell units in it via an IPO.
"This strategic initiative positions Loblaw's core businesses well for the future. We expect the REIT to not only unlock value for our shareholders, but also increase our financial capacity to pay-down debt, buy back shares, and create a long-term source of capital to invest and grow," executive chairman Galen Weston said.
The retailer plans to contribute real estate worth C$7bn to the REIT, in which it will retain a "significant majority interest".
Source:
http://www.just-food.com/news/loblaw-to-float-real-estate-assets_id121448.aspx
