El Corte Inglés will sell assets for 3 billion euro

El Corte Inglés will sell assets for 3 billion euro

Following this strategy, the company will sell real estate assets for 3 billion euro, according to El Confidencial.

With the capital received through the sale of the assets, the company intends to reduce the new debt generated by the Covid-19 crisis. The new plan is based on boosting the online business, entering new businesses, such as fully integrated phone and financial services; a large cost reduction, staff reduction and the sale of buildings which have no commercial use.

JLL will be charged with marketing the assets and it has already identified the buildings which will be placed on the market during 2021 and 2022. Amongst others, these will include: Torre Titania, former Windsor building, located at paseo de la Castellana and currently leased to EY. For its lease, El Corte Inglés receives around 6 million euro per year.

El Corte Inglés placed a portfolio on the market which includes its headquarters in Hermosilla

The group also marked other assets to be sold, amongst which are logistic warehouses, some of the six buildings used for its own offices, including its headquarters at calle Hermosilla in Madrid, and terrains located in Barcelona, Lisbon, Porto, Móstoles and Coslada. Another asset to be sold by El Corte Inglés is the 13.000 sqm parcel located next to the large warehouse of Nuevos Ministerios in Madrid.

This the third real estate plan to be carried out by the group presided by Marta Álvarez in the last few years. The first was project Dimas Gimeno, which was never executed. The second, which PwC was charged with for 2 billion euro, was also unsuccessful.

Nevertheless, the company sold several independent assets such as its Francesc Macià centre, in Barcelona, Colón in Valencia, the Gran Vía in Bilbao, the Los Arcos in Seville, Bahía Sur in Cadiz and Parquesur and La Vaguada in Madrid, for around 530 million euro.

El Corte Inglés has already sold several assets for 530 million euro

Last January, El Corte Inglés closed its Linares centre, in Jaén, affecting more than 200 workers, to whom it offered relocation in other units within the same province. The company plans to close other assets in the coming months. The Spanish company intends to carry out a layoff which will affect 3.500 workers.

During last year’s final quarter, El Corte Inglés lost around 30% in sales, with 2.817 million euro. The company is expected to continue with the adjustments until the end of the year.

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