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