Colony says Carrefour can raise EUR 30bn from property sell-off

French supermarket operator Carrefour could raise more than EUR 30 bn from the sale of its property holdings, according to Thomas Barrack, founder of US private equity firm Colony Capital. This is way more than the French retailer says the holdings are worth. Colony and French billionaire Bernard Arnault last month acquired a 9.1% stake in Carrefour and have been pressuring the company to free up capital to finance growth.

Carrerfour ceo Jose Luis Duran, who values the company’s real estate at some EUR 20 bn, has hinted that he may be willing to sell off some property assets, but denied there were any concrete plans a sale and leaseback.

Barrack said last month in an interview that US private equity firms may target Carrefour in what would be Europe's biggest ever buy-out. 'Duran is perfectly capable of launching and implementing such a program. Capital can work harder and more profitably if it's not burdened by long-term real estate ownership,' Barrack told Bloomberg.

Carrefour shares have gained 32% since January 22, the day former Carrefour ceo Luc Vandervelde was ousted by the Halle family, the French firm’s biggest shareholder. The company's market value is around EUR 41 bn.