Carrefour extends lease agreements until 2040 for retail market growth

Carrefour Israel extends lease agreements until 2040 in strategic move to consolidate its position in the retail market.

  Carrefour's strengthening strategy: extending the lease agreements until 2040  (photo credit: Lance Productions)
Carrefour's strengthening strategy: extending the lease agreements until 2040
(photo credit: Lance Productions)

According to the agreement signed last Thursday (3/28/2024) between Carrefour Israel (Global Retail) and Blue Square Real Estate Ltd., the length of the lease period for approximately 60 of the chain's branches nationwide will be extended until the end of 2040, and not will end in June 2031 as agreed so far.

The extension of the agreement reflects the mutual commitment to long-term cooperation and is an expression of confidence by the real estate company, one of the largest in the economy, in the activities of the Global Retail Group and the Carrefour chain. Along with the extension of the joint period, the companies agreed to examine opportunities for cooperation in a variety of business areas with an emphasis on the shared vision of the two companies to drive innovation and growth.

In addition to the aforementioned statement of intentions and the commitment for a longer period than expected, the Global Retail Group extended the lease agreements in 6 additional stores, which it leases from the company Amot Investments Ltd. ("Amot") that are used as supermarkets operated by Global Retail. The agreements were extended by 10-12 years.

Another contract with the same outline for extending the lease will be signed in the coming days. The strengthening of the capital along with the extension of the leases with the Blue Square and with Amot constitute a continuation of the strengthening of Global Retail and the positioning of Carrefour as a leading food chain in Israel. The company and Global Retail are working to extend additional leases and find additional branches to increase the distribution of Carrefour stores throughout the country.

Zvika Schwimmer, CEO of Electra Consumer Products: "This is an expression of confidence in our expertise as a retail group in general and the Carrefour brand in particular. We continue to implement our strategic plans in converting and opening Carrefour branches nationwide and establishing the network, while continuing close cooperation with the leading real estate companies in the economy."