Bed Bath & Beyond Inc. is cashing $250 million of its real estate holdings.
The Union, N.J.-based retailer completed a long-term sale-leaseback with an affiliate of Oak Street Real Estate Capital and expects the deal to generate more than $250 million in net proceeds. The properties sold represent 2.1 million square feet of commercial space, including retail stores, a distribution facility and office space.
More such deals may be on the way. "This marks the first step toward unlocking valuable capital in our business that can be put to work to amplify our plans to build a stronger, more efficient foundation to support revenue growth, financial stability and enhance shareholder value,” said Mark Tritton, Bed Bath & Beyond president and CEO.
Bed Bath & Beyond and financial advisors are reviewing its portfolio of retail concepts and owned real estate. Bed Bath & Beyond plans to reinvest the funds in its operations and to pay off outstanding debts.
By Brannon Boswell
Executive Editor, Commerce + Communities Today
