Spanish grocery retailer Eroski has sold a portfolio of 27 supermarkets in northern Spain and the Balearic Islands to sale and leaseback specialist WP Carey.
WP Carey has paid $102 million (€87 million) for the portfolio which comprises a total of 45,000 sq m. Eroski Sociedad Cooperativa is leasing back the properties on three 20-year, triple-net master leases.
WP Carey said the deal brings its total investment volume for the year-to-date to approximately $700 million.
Eroski is one of Spain’s largest supermarket chains and operates more than 1,600 stores. WP Carey said in a statement that the portfolio is in established locations with high barriers to entry. Most of the supermarkets are located in densely populated residential neighbourhoods with limited local competition. Strict planning laws and licensing requirements create significant barriers for new entrants, thereby increasing the inherent value of the proven sites.
“We look forward to continuing to grow our real estate footprint in Spain and to building on our partnership with Eroski,” WP Carey’s executive director investments Christopher Mertlitz said.