Related buying Virgin Megastores

LOS ANGELES (Reuters) - Real estate development firm Related Companies said on Friday it will buy the 11 Virgin Megastores music stores in North America from Virgin Entertainment Group.

Terms of the deal, which is expected to close in September, were not disclosed.

"With most of our global retail operations now franchised, Virgin Group will continue to focus on being a global leader in transportation and renewable energy, with interests in financial services, communications and media, health and leisure," Virgin Group Founder and Chairman Richard Branson said in a statement.

Related said it would continue to invest in the Virgin Megastores, whose sales are growing.

Related has over $16 billion of real estate assets, with an additional $10 billion currently in development. The company's other businesses include the Equinox health clubs and Kerzner International resorts.

Reuters/Nielsen