Woolworths has got out of hotel and liquor store property in the largest hotel portfolio sale in Australian history.
The supermarket group announced the sale and leaseback by ALH Group Pty Ltd of a portfolio of 54 freehold properties, including Dan Murphy’s and BWS, to a Charter Hall Group led consortium for $603 million.
The ALH Group is 75% owned by Woolworths and 25% by the Bruce Mathieson Hotel Group and operates 329 venues and 545 retail liquor outlets across Australia.
The ALH Group will continue to retain ongoing operational control of the hotels and retail liquor stores through long‐term leases.
This transaction, due to be completed next month, means Woolworths will have divested more than $2.8 billion of property assets since 2010.
“This is one of the largest hotel portfolio sales in Australia’s history,” said Woolworths CEO Grant O’Brien.
“Woolworths’ and ALH’s preference is to enter into long term leases over its premises rather than holding property assets.”
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.