Garbe Retail & ICG RE buy 22 Coop supermarkets in Italy

GRR Garbe Retail has announced its first acquisition in Italy, acting as local operating partner in the sale and leaseback acquisition of a portfolio of 15 supermarkets and seven hypermarkets from Italian operator Coop Alleanza 3.0, in joint venture with ICG Real Estate and a German institutional investor.

Coop Alleanza 3.0 is the largest cooperative in Italy and has a 25% market share in Emilia Romagna

The assets were purchased on behalf of ICGRE’s Strategic Real Estate II fund and have been subsequently let to Coop on a 30-year lease.

“This acquisition represents a key milestone in GRR Garbe Retail’s journey,” said Thomas Kallenbrunnen, managing director, Garbe. “It reflects our growth ambitions, from expanding our value-add business in Germany to taking our first steps into the European market after having acquired GRR a year ago. By entering the Italian retail market, we are laying the foundations for our long-term growth plans.”

The portfolio, which is worth €222 million, has a gross lettable area of 140,000 sq m and is primarily located in the wealthy northern Italian region of Emilia Romagna. The assets are situated in key locations and are mission critical for Coop Alleanza 3.0, which has a 25% market share in the region. Coop is the largest cooperative in Italy and the third-biggest in Europe.

Thomas Kallenbrunnen, Managing Director, Garbe

The lease has a 30-year term without a break clause, around twice the standard lease length for comparable transactions, plus full indexation on the Italian CPI and no landlord maintenance capex. The lease structure – rare in the Italian market – protects Coop’s interests in the long term and provides the real estate investors with secure, high-yielding cash flows.

“This transaction underscores our ability to work in collaboration with corporate occupiers to find innovative solutions that ensure their long-term real estate needs while also providing immediate value appreciation for our investors,” said Luca Lelli, managing director, ICG Real Estate. “A market leader in the Italian grocery sector, Coop is a valued partner, and we look forward to enhancing the portfolio for our mutual benefit.”

ICGRE invests in operationally critical real estate with long-term, durable cashflows. As part of this strategy, ICGRE is a market leader in European sale-and-leasebacks, working with high-quality corporate partners to provide alternative financing for existing real estate holdings. 

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