W.P. Carey Acquires European Supermarket Portfolio for $102M
With the off-market, sale-leaseback investment, the company’s year-to-date investment volume now totals $700 million.
NEW YORK – New York-based, W.P. Carey Inc. has executed a $102 million sale-leaseback of a supermarket portfolio encompassing 27 properties located in Northern Spain and the Balearic Islands.
With the recent acquisition, the net lease REIT’s year-to-date investment volume totals $700 million.
The 481,000-square-foot portfolio is triple-net leased under three 20-year master leases with Spanish CPI-based rent escalations to the existing tenant, European food retailer, Eroski Sociedad Cooperativa.
Eroski, established in 1969, serves as one of Spain’s largest supermarket chains; operating more than 1,600 retail stores.
The portfolio’s properties are predominantly situated in dense residential neighborhoods, with limited local competition.
The portfolio’s facilities have experienced steady sales growth within recent years, alongside the Spanish food retail market, which has grown consistently, due to rising shopper spending and demand remaining largely unaffected by COVID-19.
The food retailer continues to invest in new technologies and digitalization in order to create an omnichannel experience. The company recently launched an online supermarket and mobile app for ordering groceries.
Eroski has additionally implemented several initiatives in order to reduce its impact on the environment, such as eco-design packaging, mandating sustainable fishing practices, minimizing the environmental impact of its logistics and transportation operations and waste management.
“Due to our longstanding commitment to building strong tenant partnerships, we were able to secure this off-market transaction with an existing tenant to acquire a portfolio of high-quality supermarket assets,” states Christopher Mertlitz, executive director of investments at W. P. Carey. “Our experience structuring and closing transactions in the Spanish market was critical in achieving a timely close. We look forward to continuing to grow our real estate footprint in Spain and to building on our partnership with Eroski.”