Safeway Inc. has sold shopping center and real estate development assets worth $830 million from its subsidiary, Property Development Centers, LLC, to Carlsbad-based Terramar Retail Centers.
Safeway undertook the sale of PDC in connection with the pending merger between Pleasanton-based Safeway and grocery chain Albertsons, the grocery chain said in a company statement. The merger was announced in March and is expected to close in January.
The properties sold to Terramar include 11 completed retail shopping centers, nine retail shopping centers under construction — including a 24-acre retail project and housing complex in Walnut Creek, the Orchards, that will be anchored by a 55,000-square-foot Safeway — and five projects in “due diligence” and entitlement phases, the statement said.
PDC was formed by Safeway in 2008 to develop retail shopping centers. The centers and projects are located predominantly in California and Hawaii, and most of them have a Safeway as a primary anchor tenant.
Safeway Inc. operates Safeway, Vons, Pavilions, Randalls, Tom Thumb, and Carrs stores. The company reported sales of $35.1 billion in 2013 and employs about 138,000 people. It currently operates 1,326 stores in 20 states and the District of Columbia as well as 13 distribution centers and 19 manufacturing plants.
Source: San Francisco Business Times