AXA RE in EUR 55m sale-and-leaseback with Eroski

AXA Real Estate Investment Managers (AXA Real Estate) said on Tuesday that its Alternative Property Income Venture (APIV) fund has purchased a portfolio of 28 petrol stations in northern Spain in a EUR 55 mln.

The assets were acquired by AXA REIM in an off-market sale and leaseback transaction with Eroski, one of Spain's largest supermarket and foodstore retailers.

Debt for the acquisition, which was undertaken on behalf of APIV's clients, was provided by a pool of four Spanish banks. La Caixa is the agent bank and the other financiers are BBVA, Banesto and Banco Santander.

All 28 of the petrol stations are subject to a 20-year triple-net lease with Eroski and are well located, adjoining an Eroski hypermarket, consolidated shopping centre or retail park. Geographically they are located in eight different regions in northern Spain, Eroski's traditional base.

Commenting on the acquisition, Daniel Bowden, fund manager within AXA Real Estate said: 'The acquisition of these 28 petrol stations from Eroski is a clear example of AXA Real Estate's strength in specialist and alternative real estate classes and our expertise in unlocking off-market opportunities through our pan-European network of local offices.'

He added: ''We have identified a strong pipeline of potential investments across Europe, as we look to deploy the remainder of the Venture's equity, and are keen to expand AXA Real Estate's activities in the alternative real estate sector.'

Following the acquisition, the Venture will be 80.3% invested and will have a gross asset value of EUR 600 mln, with the investment period due to close in September 2011.

APIV was launched in September 2007 and is a Luxembourg pan-European closed-ended real estate investment fund for pan-European institutional investors.

AXA REIM said that the transaction fits with APIV's strategy of targeting alternative property assets in Europe with low asset management or letting risk and a high level of income. The deal improves the Venture's weighted average lease length to 15.0 years from 14.4 years, with no vacancies.

The Eroski assets complements the Venture's diversified portfolio of healthcare, government and leisure assets.

Catella Property Spain acted as real estate adviser, while MJ Group International acted as independent consultant for the transaction.