Rockspring Property Investment Managers LLP has acquired 22 neighbourhood grocery stores and standalone units from Spanish food retailer, Eroski, on a sale and leaseback basis on behalf of one its single-client accounts.
Purchased for approximately EUR45.5 million, the entire portfolio is let to Eroski on a new 20-year lease.
The portfolio, which comprises 22 assets totalling 95,000 sq ft of lettable area, mainly located in the Basque country and Mallorca, benefits from strong and resilient local economies and demographics. This transaction represents the second Eroski portfolio acquisition, following the purchase of 21 assets in August 2010 for circa EUR45 million. Purchased on behalf of a single-client mandate, the acquisitions reflect its investment strategy of targeting core plus returns through investing in retail, office and warehouse opportunities across Western and Central Europe.
James Preston, Rockspring Iberia’s Managing Director, says: “In uncertain times, we continue to favour food retailing, owing to its characteristics of being a defensive sector, well insulated from the volatility of other retail segments of the market. These properties appealed to us due to the combination of their established locations, strong local economic fundamentals, sustainable rental levels and the quality of Eroski as a tenant.”
Jesus Armendariz, Eroski’s Asset Management Director, said:
"This is a continuation of the sale and leaseback strategy we have been following to date whilst maintaining a focus on our core business activity and our customers. The attractiveness of the investment opportunity and the good location of our assets has allowed us to move forward in this type of transaction."