Spanish food retailer Eroski has completed its fourth disposal of the year, with the sale and leaseback of 21 neighborhood grocery stores and stand-alone units to Rockspring Property Investment Managers LLP ('Rockspring'), on behalf of a single-client account for approximately 45 million. Eroski has signed a 20-year lease for the entire portfolio.
The portfolio, which comprises 21 assets totaling 320,000 ft² (approx. 29,000 m²) of lettable area located mainly in the Basque country and Majorca, benefits from strong and resilient local economies and demographics.
The transaction reflects the investment strategy of the single-client mandate, a UK-based pension fund, which is targeting un-leveraged core/core plus returns across Western and Central Europe in retail, office and warehouse opportunities with a total investment capacity of £300million.
James Preston, Rockspring Iberia's Managing Director, said: "Food retail has proven to be a well performing, defensive sector across Spain both before and during the economic downturn; we are therefore pleased to have secured exposure to this successful asset type. These properties appealed to us due to the combination of their prime location, strong local economic fundamentals, sustainable rental levels and the quality of Eroski as a tenant. As such, the investment provides a high degree of insulation from any further effects of the downturn, as well as being well positioned for any recovery."
José Miguel Fernández Astobiza, Eroski's Development Manager, said "This portfolio disposal shows further progress in our strategy as we seek to dispose of the freehold interest in our properties in order to release capital to develop our commercial retail activities."
Cushman & Wakefield advised Eroski. DJV Abogados advised Eroski on legal issues and Nicea Abogados advised Rockspring.