ICG Makes €105M Investment in Eroski Spanish Hypermarkets

31 May 2018 – Property Magazine

Intermediate Capital Group (ICG) will invest €105 million in six Spanish hypermarkets. ICG has partnered with Inmobiliaria Armuco S.L., a real estate company 45% owned by Eroski, a food retailer in Northern Spain, to acquire five of its hypermarkets and one more completely owned by Eroski in a primary sale and leaseback transaction underpinned by 21-year, CPI-linked, triple-net leases.

The assets are located in the Basque region of Spain and each rank in the top quartile in terms of Eroski’s trading performance. According to Savills, Spain has enjoyed a return to growth in excess of 3% for the last three consecutive years and is predicted to outperform the Eurozone, in terms of GDP, for the next three years.

Chris Nichols, Managing Director of ICG Sale and Leaseback, commented: “We are pleased to have partnered with Eroski on this transaction and to have acquired six assets in strategic priority locations for Eroski. We have a pipeline of deals, and are actively looking for further opportunities in this space, both in Spain and across the wider European market”.

ICG was advised by Savills and Eversheds.

Original story: Property Magazine

Edited by: Carmel Drake

Makro Puts 3 Centres in Madrid Up For Sale for €90M

12 April 2018 – Eje Prime

Makro wants to make cash in Madrid. The food wholesaler chain wants to get rid of three of the centres that it owns in the Spanish capital to raise €90 million. The intention of the company is to sell the assets under the sale & leaseback method, which means that the company would continue to occupy the premises as the tenant.

The three centres for sale are located in Barajas, Alcobendas and Paseo Imperial and will allow the company, which was founded in The Netherlands, to raise money to invest in the development of new projects. Currently, the company is owned by the German group Metro, which has already successfully signed operations of this kind in other markets, according to Expansión.

Makro has 37 centres in Spain located in fifteen autonomous regions. The food company’s list of customers exceeds 900,000 people and its total retail surface area across the country spans 241,744 m2.

This sale, under the sale & leaseback formula, is currently being used in the market by lots of operators. One example is Inditex, which sold 16 stores in Spain and Portugal under this method in January to the German investment fund Deka; it paid €400 million for the shops, some of which are located in prime locations in cities such as Madrid and Barcelona.

Original story: Eje Prime 

Translation: Carmel Drake