Specialist retail property fund manager Pradera has acquired a portfolio of six Eroski hypermarket assets in northern Spain for German pension fund Nordrheinische Ärzteversorgung (NAEV).
The assets are located in the Basque Country and Navarra and consist of six individual hypermarkets totalling 56,158 sq m. They are let on long leases to the Eroski Group and NAEV paid close to €130 million.
NAEV’s real estate fund is administered by Universal-Investment Luxembourg which has retained Pradera to manage the portfolio under a long-term asset and property management contract.
Long income stream the real attraction
Pradera fund manager Peter Davies said the transaction was complementary to the existing portfolio of retail assets managed by Pradera. ‘The projected extremely long income stream secured against the covenant of the dominant grocery operator in this region of Spain was, from the outset, one of the most attractive reasons for acquiring this portfolio.”
Davies added: “We have been looking at the long income market for some time and thought the acquisition of this portfolio perfectly demonstrated the key characteristics of such a strategy. We will certainly be looking at more portfolios in this sector.”
Eroski recently sold a portfolio of 27 supermarkets in northern Spain and the Balearic Islands to sale- and-leaseback specialist WP Carey for about €87 million, as we reported on 4 November.