ICG Real Estate (ICGRE), in a joint venture with GRR GARBE Retail (GARBE) completed the acquisition of a portfolio of 15 supermarkets and seven hypermarkets from leading Italian operator, Coop. The assets were purchased on behalf of ICGRE’s Strategic Real Estate II fund, and have been subsequently let to Coop on a 30-year lease.
Totalling 140,000m2 in gross lettable area (GLA), the portfolio is primarily located in the wealthy northern Italian region of Emilia Romagna. The assets are situated in key locations and are mission-critical for Coop, which has a c. 25% market share in the region.
The lease consists of a 30-year duration without a break clause, circa twice the standard lease length for comparable transactions, plus full indexation on the Italian CPI and no landlord maintenance capex. The lease structure – rare in the Italian market – protects Coop’s interests in the long term and provides the real estate investors with secure, high-yielding cash flows.
ICGRE invests in operationally critical real estate with long-term, durable cashflows. As part of this strategy, ICGRE is a market leader in European sale-and-leasebacks, working with high-quality corporate partners to provide alternative financing for existing real estate holdings.
Luca Lelli, Managing Director at ICG Real Estate, commented: “This transaction underscores our ability to work in collaboration with corporate occupiers to find innovative solutions that ensure their long-term real estate needs while also providing immediate value appreciation for our investors. A market leader in the Italian grocery sector, Coop is a valued partner, and we look forward to enhancing the portfolio for our mutual benefit.”
Thomas Kallenbrunnen, Managing Director at GARBE, added: “This acquisition represents a key milestone in GRR GARBE Retail’s journey. It reflects our growth ambitions, from expanding our Value Add business in Germany to taking our first steps into the European market after having acquired GRR a year ago. By entering the Italian retail market, we are laying the foundations for our long-term growth plans.”
Image source - ICGRE.
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