Carrefour to raise EUR 43.5m for property unit

French retail giant Carrefour plans to raise EUR 43.5 mln in equity to plough into its retail property unit Carrefour Property Development. The company said on Tuesday that it will raise capital by issuing new shares, giving preferential rights to existing shareholders.

Carrefour added that the capital will be used to finance the acquisition of real estate assets to be carried out before the end of 2008. It said it plans to buy a supermarket in Forges-les-Eaux as well as the Pau Lescar commercial gallery located adjacent to a Carrefour hypermarket. BNP Paribas is lead-managing the capital increase.

Earlier this year the French retail giant said it was to sell EUR 1.5 bn worth of property to private and institutional investors as part of its new strategic plan to make real estate its second core business. The company also said it was setting up a new real estate vehicle, Carrefour Property, to which it would transfer around 60% of its property portfolio valued at EUR 20 - 24 bn. The company is planning an initial public offering of Carrefour Property, but said earlier this year it would wait until the market recovers.