Darden Plans REIT Spinoff, Sale-Leasebacks


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The proposed REIT spinoff would initially focus on Darden’s Olive Garden brand.

ORLANDO—Add Darden Restaurants Inc. to the roster of retail companies planning a REIT spinoff. The owner of brands including Olive Garden and Capital Grille said Tuesday that its board had approved a strategic plan to pursue a separation of a portion of the company’s real estate assets, via combination of sale-leasebacks of individual locations and a separation of about 430 owned properties into a standalone company. The goal is to retire about $1 billion in debt via monetization of the real estate.

The sale-leaseback program of individual restaurants is already under way, with 75 properties listed at expected cap rates of 5.5% on the sales. Of those, about 30 deals have already been completed, Darden said Tuesday. Additionally, the company plans an SLB of its Orlando Restaurant Support Center property and buildings…

Darden Plans REIT Spinoff, Sale-Leasebacks

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