Bed Bath & Beyond Inc. said Monday it completed a sale-leaseback transaction with an affiliate of Chicago-based Oak Street Real Estate Capital generating more than $250 million in net proceeds.
“We are pleased to complete this sale-leaseback transaction,” said Bed Bath & Beyond President and Chief Executive Officer Mark Tritton. “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 real-estate sold to Oak Street represents approximately 2.1 million square feet of commercial space, and includes the company’s headquarters in Union, a distribution facility, and an undisclosed number of stores. The proceeds from this transaction will be used to pay off debts and buy back shares.
Bed Bath & Beyond will continue to use the spaces on the basis of a long-term lease.
As previously announced, Union-based Bed Bath & Beyond, together with outside financial advisors, is reviewing its portfolio of retail concepts and owned real estate to optimize its asset base and enhance shareholder value. In connection with this review, the company continues to evaluate certain remaining owned real estate.