(Adds commentary to the chapter of Diniz’s Peninsula)
RIO DE JANEIRO, 8 July. (Reuters) – Brazilian food retailer GPA has settled an arbitration dispute with the real estate arm of Brazilian investment fund Peninsula, the company said in a statement Thursday in its securities filing, but without disclosing the terms of the agreement.
Fundo de Investimento Imobiliario Peninsula initiated arbitration against GPA, a subsidiary of France’s Casino Guichard Perrachon SA, in 2017. The dispute concerns a long-term lease that GPA holds at 60 Peninsula properties, the company said.
“The settlement agreement reached between GPA and Peninsula resolved past differences and improved contracts while maintaining long-term leases, with improved new rules more tailored to current market conditions,” the GPA said in a statement.
Peninsula is the family office of the Brazilian Diniz family, who founded GPA but sold their stake in the company a few years ago.
“We are delighted to have found a positive solution for all parties, and this is where we end the arbitration that has continued,” said Abilio Diniz, retail magnate and son of the GPA founder, in a statement. (Reporting by Graham Slattery; editing by Mark Potter and Dan Grebler)