AEW Europe/Tristan fund completes €150 million Spanish retail sale & leaseback (ES)

European Property Investors Special Opportunities, L.P. (EPISO), a fund co-managed by AEW Europe and Tristan Capital Partners, has completed the sale and leaseback of more than 10 retail units across Spain for approximately €150 million. The assets, located throughout Spain, total around 120,000 m² and are let primarily to Eroski, a Spanish supermarket chain with over 2,000 outlets across the country. Occupancy is 100%, they continue operating as usual and the weighted average unexpired lease length is 20 years (fixed).

Ric Lewis, CEO of Tristan Capital Partners commented: "We're pleased to have completed this transaction with such a relevant company. We believe this long-leased investment into a durable and defensive sector like grocery-anchored retail property will prove to be a thoughtful and counter-cyclical means of investing the EPISO fund into the recovering Spanish economy."

Rob Reiskin, Head of Investments at AEW Europe added: "In disrupted markets, there are excellent deals available for those experienced investors able to differentiate between short-term impairment and long-term intrinsic value. We believe this transaction demonstrates this fact."

Jose Miguel Fernández, Head of Development at Eroski commented: "From the different options we have analysed, we have chosen the one that better suits our objectives."

According to Rupert Lea, Head of Retail Investment at Cushman & Wakefield: "We believe that in the current complex market situation, there are still investors very interested in S&LB transactions in Spain. Transactions such as this show a vote of confidence in the market and its recovery as well as demonstrating that investor interest in the retail sector is growing."

Cushman & Wakefield is the real estate consultant that advised the EPISO fund. Linklaters advised the EPISO fund on legal issues and DJV Abogados advised Eroski.

Source: Bellier Financial

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