W. P. Carey Inc has invested €87m in a 27-property supermarket portfolio located in Northern Spain and the Balearic Islands. The portfolio comprises a total of 45,000m² and is triple-net leased under three 20-year master leases to Eroski Sociedad Cooperativa, one of the largest food retailers in Spain.
Established in 1969, Eroski ranks among Spain's largest supermarket chains, operating over 1,600 retail stores. The portfolio is predominantly located in dense residential neighbourhoods with limited local competition across Northern Spain and the Balearic Islands where Eroski holds the dominant share of the food retail market. Strict planning laws and licensing requirements create significant barriers for new entrants, thereby increasing the inherent value of the proven sites. The Spanish food retail market has demonstrated consistent growth driven by rising shopper spending on consumer staples, with demand remaining largely unaffected by COVID-19. All facilities in the portfolio have seen steady sales growth over the past four years.
Christopher Mertlitz, Executive Director, Investments, W. P. Carey said: "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. 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."
