LCN Capital Partners’ third European real estate fund Fund III has invested €180m to buy 27 supermarkets in a sale-leaseback with Spanish supermarket chain Mercadona.

Announcing the deal, Mercadona said it has agreed the sale and long-term lease agreement with LCN’s European Fund III fund.

Mercadona, represented CBRE, said the deal allows the company to increase liquidity from their existing assets for reinvestment into their core business.

Chris Gardener, head of CBRE EMEA retail investment, said: “This transaction is an illustration of the underlying strength in the sale and leaseback market for convenience retail.

“Long secured terms to experienced operators are in demand given the current market uncertainty and we predict further interest and liquidity in this sector across Europe.”

LCN Capital Partners has over $3.5bn in assets under management and has been a leader in the sale-leaseback market; its co-founder, Edward V. LaPuma closed on many of the first sale-leasebacks in various countries before the turn of the millennium. Recently, LCN has closed on a large number of sale-leaseback transactions in several countries covering various industries and property types.

Edward V LaPuma, co-founder and managing partner of LCN Capital Partners, said: “LCN is proud to have completed this transaction with Mercadona, a corporate leader in Spain. As with other standout companies, LCN looks to partner with our tenant-clients for the long-term.

“We will continue to work together with Mercadona on this portfolio while simultaneously looking to provide them with additional, real estate based, corporate financing solutions.”

Paolo Rosso, director at LCN Capital Partners said: “Located throughout Spain, these mission-critical properties are leased under an LCN-negotiated, long-term lease which provides Mercadona with operational control of the properties.”

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