M&G Real Estate has added a €32m asset to its food-anchored store portfolio in France.
The manager said it has bought a 14,000sqm Géant Casino hypermarket in Toulouse leased to French retailer Casino Group.
The latest deal is M&G’s fifth Géant Casino hypermarket acquisition in France and the second on behalf of the M&G European Secured Property Income Fund. Last year, the fund acquired an asset in Mandelieu-la-Napoule.
“We expect high-quality food stores with defensive lease structures to continue to perform well. In the wider economic context, long lease property strategies with predictable, long-term cash flows and direct inflation linkage, should be particularly well-positioned to capture the potential upside of higher inflation,” said Lee McDowell, manager of the M&G European Secured Property Income Fund.
Antonin Prade, investment director for France and European long income at M&G Real Estate, said: “In an inflationary environment, long leased, well-located, food-anchored stores show an even greater protection of income and capital.
”Moreover, our strong landlord/tenant partnership with Géant Casino will further strengthen the portfolio’s ESG profile.”
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