Savills Investment Management has added two assets in Spain to the portfolio of its European food retail strategy backed by German institutional investors.

The international real estate investment manager said it acquired a supermarket in Alzira, Valencia from developer Ten Brinke at the end of last month, and a property in Aranjuez, south of Madrid, from developer OMO Retail at the end of last year. It did not disclose financial details.

Savills IM said the two assets were acquired for a European food retail property fund which has around €370m in capital commitments from its investors since 2020. 

Kathrin Michalzik, portfolio manager at Savills IM, said: “With these two supermarket properties in Spain, we have added further modern assets to the portfolio of the European food retail strategy, both of which are let long-term to a retailer with a strong credit rating.

“The strategy, which is already broadly diversified across seven countries, still has further equity available for investments. We are therefore continuing to look for investment opportunities in thriving locations in Spain, Portugal, Italy, the UK, Ireland, Benelux and the Nordics.”

Ian Jones, director of investment at Savills IM, said: “Despite the challenging market conditions, we continue to invest judiciously in properties with the characteristics of modern construction, dedicated catchments and strong occupiers.”

Jones said that in addition to these acquisitions in Spain, a new supermarket property located at the heart of the rapidly expanding Adamstown district of Dublin was acquired by forward purchase and let to Aldi and Tesco and transferred to the retail fund.

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