Wesfarmers considers $700 Million partial spin-off of Coles real estate

Posted by AFN Staff Writers on 17th October 2012

Wesfarmers will potentially spin off around 25 of its Coles Supermarket properties by the end of 2012, valued at around $700 Million.

It has been reported that Wesfarmers has enlisted investment banks Goldman Sachs Group Inc. and Royal Bank of Scotland Group Plc to advise the company, and restructure the property strategy to support future Coles developments.

It is said that Coles will keep a stake in the venture to stay ‘in control’, unlike competitor Woolworths which unveiled its $1.4 Billion SCA Property Group earlier in October. Australian Food News reported that the Woolworths spin off would include 69 stores across Australia and New Zealand.

The Wesfarmers spin-off news has been met with strong investor support, as shares rose 1.1 per cent higher compared to the broader market which rose just a few points.

Wesfarmers, mainly through its Coles division, currently owns 744 supermarkets, 794 liquor outlets, 625 Coles Express stores and 92 hotels Australia-wide.

Post Views: 50

Square serves up custom-built solution for restaurants and loyal customers in Australia

Square, Inc. (NYSE: SQ) announced that it is introducing Square for Restaurants, its custom-built p...

Woolworths wins with $1.5 billion FY17 profit

The Woolworths Group has reported a $1.5 billion profit for its 2017 financial year.

Hanson’s war on Halal leaves bitter aftertaste for Kosher consumers: Jalna decision to lose Jews

One of Australia’s leading yoghurt manufacturers Jalna is experiencing a huge backlash from Jewish c...

Woolworths unveils its next generation supermarkets

Woolworths has unveiled its next generation of supermarkets with the opening of a new Woolworths Met...

Australian social media survey reveals national taste divisions in lolly choices

A study conducted by Nestle owned confectionery group Allen’s has revealed that Australians are divi...

Coles wax its competitor in de-wax war

Coles says it is the first Australian supermarket to offer no added wax on its apples.

Australian grads want to work for Aldi

Aldi Australia has been named the top employer for graduates looking for a career in retail and fast...

CSIRO turns eating veggies into a game with app

The CSIRO has turned to gamification to help make eating vegetables appealing.