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Latest Business News

KarstadtQuelle Agrees to Sell Assets

Monday, March 27, 2006 5:09:53 PM
By DAVID RISING

BERLIN (AP) - Struggling German retailer KarstadtQuelle AG on Monday agreed to sell all of its department store real estate assets in a deal worth 4.5 billion euros ($5.39 billion) that enables it to pay off all its debts.

The assets were sold to a joint venture company called Whitehall, a property fund of which U.S.-investment bank Goldman Sachs owns 51 percent and KarstadtQuelle 49 percent, the retailer said in a statement.

KarstadtQuelle said it would receive an immediate cash payment of 3.7 billion euros ($4.43 billion), and expects to get around 800 million euros ($960 million) from an additional appreciation of the assets.


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