ORLANDO—Add Darden Restaurants Inc. to the roster of retail companies planning a REIT spinoff. The owner of brands including Olive Garden and Capital Grille said Tuesday that its board had approved a strategic plan to pursue a separation of a portion of the company's real estate assets, via combination of sale-leasebacks of individual locations and a separation of about 430 owned properties into a standalone company. The goal is to retire about $1 billion in debt via monetization of the real estate.

The sale-leaseback program of individual restaurants is already under way, with 75 properties listed at expected cap rates of 5.5% on the sales. Of those, about 30 deals have already been completed, Darden said Tuesday. Additionally, the company plans an SLB of its Orlando Restaurant Support Center property and buildings.

Under the plan announced Tuesday, the spinoff REIT—which initially will focus on the Olive Garden brand—would lease back substantially all of its “prudently selected” properties to Darden, according to an investor presentation. Darden says the spinoff company, which it expects to separate by the end of 2015, would be well positioned to expand through real estate acquisitions of other businesses.

Darden CEO Eugene Lee, who assumed the role following a shareholder battle last year, says the SLB/spinoff plan is the result of “a comprehensive review of alternatives to best take advantage of our real estate portfolio.” He adds that “a significant amount of work remains in order to proceed with the REIT transaction,” which may not occur at all.

Nonetheless, Lee says, “we believe this plan will result in a more optimized capital structure and will create long-term shareholder value. We appreciate the valuation differential between restaurant and real estate companies and are excited to create a new company, which we believe will unlock current value while growing through acquisitions of other properties.” JP Morgan and Moelis & Co. are serving as financial advisors to Darden on the strategic plan, while Skadden, Arps, Slate, Meagher & Flom LLP is providing legal counsel.