German retail and mail order company Arcandor AG ( ARO.XE) expects the sale of its real estate portfolio by Christmas, Arcandor board member Peter Wolf told the media in Duesseldorf.
He said the size and the complexity of the transaction is prolonging negotiations, but added that the deal was “right on track.”
“It doesn’t matter if there is a closing 12 hours sooner or later,” Wolf said.
Wolf is the head of Karstadt Department Stores, a unit of German retailer and mail order company Arcandor AG.
The retailer brought its real estate portfolio in a joint venture with Goldman Sachs Group Inc.’s (GS) real estate fund Whitehall. Whitehall holds a 51 per cent stake, while Arcandor owns the remaining 49 per cent. The portfolio contains all Karstadt outlets throughout Germany.
Arcandor had previously said it expects EUR800 million from the sale of its 49 per cent stake in the real estate portfolio.
Arcandor wants to sell the portfolio to generate cash for the planned restructuring of the retailer. It then aims to lease back the buildings for 15 years.
Wolf expects sales in the Christmas holiday shopping season to be at least on last year’s level. He said this was an “ambitious target” due to the high sales level reached last year, when consumers brought forward planned purchases ahead of the rise in the value-added tax in January 2007.
Wolf said the start in the Christmas holiday season was “really satisfying.”
