ICG Real Estate, the real estate division of ICG, has acquired a portfolio of ambient, chilled and frozen distribution facilities from supermarket chain Morrisons for £220m (€255m).
Each of the seven properties are being leased to Morrisons on an index-linked and triple-net basis for a term of up to 25 years.
ICG said its 12-strong sale-and-leaseback team focuses on core-plus and mission-critical assets in Europe with a view to generating long-term, inflation-protected income streams.
Chad Brown, managing director for sale-and-leasebacks at ICG, said: “The Morrisons portfolio is a prime example of the mission-critical real estate we are seeking to acquire. We look forward to working with Morrisons as they continue to grow their footprint.”
Chris Nichols, managing director and portfolio manager, added: “This transaction is an excellent example of how sale-and-leaseback investing can serve as an alternate form of financing. We continue to seek similar pan-European mission-critical opportunities as we actively deploy capital across Western Europe.”
Jo Goff, Morrisons chief financial officer, said: “We continue to invest in our strategy of becoming a broader, stronger, more popular and more accessible business and this transaction will help to finance further investment.
“The acquisition of McColl’s earlier this year gave us a leading position in the UK convenience market and next year we are on plan to open a further five supermarkets across the UK, and to invest further in our manufacturing operations.”
