ICG Real Estate has acquired a development portfolio of grocery stores from Lidl for €203.5m.

The real estate arm of global alternatives asset manager ICG bought the 24 stores for its Strategic Real Estate II Fund.

They are in various stages of construction are are now let to Lidl on a long-term, triple-net lease.

ICG has committed to forward-purchasing each newly developed store upon practical completion. The first acquisition completed in October 2025 and the final purchase is set to occur in July 2026.

The portfolio encompasses 50,000sqm and includes 17 assets in the UK, four in Ireland and three in Spain.

ICG said the non-discretionary grocery sector exhibited growth and resilience and that Lidl’s “value proposition providing strong downside protection through macro-economic turbulence”. Lidl generated revenue of €88.6bn and EBITDA of €5.5bn in 2024.

Krysto Nikolic, global head at ICG Real Estate, said: “Through this sale-and-leaseback agreement we have secured a portfolio of brand new, purpose-built and mission-critical properties let on very long-term leases, delivering highly sustainable triple-net income from Lidl, one of the world’s leading grocery brands selling non-discretionary items to consumers.

“We are excited to be partnering with Lidl on this mutually beneficial transaction, which provides a route for the grocer to recycle capital back into its core business, whilst our investors benefit from secure, highly visible and growing future rental cash flows.”

To read the latest IPE Real Assets magazine click here.

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