Aeon Co., Japan's biggest supermarket chain, said it plans to set up a publicly traded real estate investment trust by February 2013 as it pushes to cut debt.
Aeon aims to reduce debt by more than ¥200 billion by raising funds through the REIT and via other "reforms," Yoshiki Mori, a senior executive vice president, said in Tokyo on Thursday.
The mall operator, which last month said it was considering setting up the REIT, has made acquisitions to grow amid a recovery in demand following the March 2011 disasters. Aeon had total debt of ¥1.4 trillion as of February, according to Bloomberg data.
Last year, the retailer agreed to pay ¥45 billion for regional grocers Marunaka Co. and Sanyo Marunaka KK, to expand in the western part of the country. Aeon will use proceeds from the IPO, the biggest by a Japanese REIT, to build more shopping centers, the Nikkei newspaper reported last month.
With your current subscription plan you can comment on stories. However, before writing your first comment, please create a display name in the Profile section of your subscriber account page.