By Joshua Burd
Bed Bath & Beyond Inc. has completed a $250 million sale-leaseback agreement spanning more than 2 million square feet of commercial space, in a step aimed at stabilizing the finances of the Union-based retailer.
The company announced Monday that it has completed the deal with an affiliate of Oak Street Real Estate Capital, noting that the transaction represents some 2.1 million square feet of retail stores, a distribution facility and office space. Bed Bath & Beyond will continue to occupy the properties under long-term leases.
In the meantime, the deal provides an infusion of more than $250 million. The exact locations were not immediately available Monday.
“We are pleased to complete this sale-leaseback transaction,” said Mark Tritton, the company’s CEO and president. “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.”
The deal, which boosted share prices of the publicly traded retailer, follows Tritton’s arrival as CEO late last year and comes as part of a plan to help reverse its fortunes. Bed Bath & Beyond is working with outside financial advisers to review its portfolio of retail concepts and owned real estate to optimize its asset base and enhance shareholder value.
In connection with the review, the company continues to evaluate certain remaining owned real estate. The retailer said the proceeds from this first transaction may be used to reinvest in the company’s core business operations and ongoing business transformation efforts to drive growth, fund share repurchases, reduce debt or some combination of these options.
