As part of its real estate reevaluation, Bed Bath & Beyond has completed a sale-leaseback transaction with an affiliate of Oak Street Real Estate Capital, generating more than $250 million in net proceeds.
The properties involved— retail stores, a distribution facility and office space— consist of about 2.1 million square feet of commercial space, the company noted. Bed Bath & Beyond will continue to occupy the properties pursuant to long-term leases. The proceeds from the transaction, the company maintained, may apply to core business operations and ongoing business transformation efforts, share repurchases, debt reduction, or a combination of the three.
As previously announced, Bed Bath & Beyond and its outside financial advisors have been reviewing the company’s portfolio of retail concepts and owned real estate to optimize the asset base and enhance shareholder value. In connection with the review, Bed Bath & Beyond continues to evaluate certain remaining owned real estate.
“We are pleased to complete this sale-leaseback transaction,” said Mark Tritton, Bed Bath & Beyond’s president and CEO. “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.”