Los Angeles - Richard Branson's Virgin Entertainment Group has reached a deal to sell its chain of eleven Virgin Megastores in North America to Related Companies, a real estate development firm.

Financial 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," said Virgin Group founder and chairman Richard Branson.

Related said that senior management will remain at Virgin Megastores, and that it will "continue to make key investments into the company, its assets and its future."

The retail chain experienced a 17% sales increase in its fourth quarter, bolstered by growth in music sales (10%), DVD sales (11%), video games (26%) and fashion/electronics (30%).

Related counts over $16 billion of real estate assets, including the Equinox fitness club chain and Kerzner International resorts.

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