Global investment giant Barings, on behalf of a pan-European strategy to acquire core real estate, has purchased a portfolio of hypermarkets in France from Cora, a chain of hypermarkets owned by Louis Delhaize Group.
Financial details were not disclosed.
Located in Metz, Mulhouse, Evian and Quincy-sous-Sénart, well-known secondary cities across France, the portfolio comprises a total of four assets with a total lettable area of 85,876 sqm across c. 400,000 m2 of land.
The assets were acquired in a sale-and-leaseback (S&L) deal with Cora, with all benefitting from 12-year leases at point of completion.
This is the first S&L by Cora in France.
Guillaume Bieganski, real estate country head – France, at Barings said: 'Hypermarkets have remained resilient in recent years, despite headwinds in other retail segments and the challenges of the Covid-19 pandemic, and we are confident that food-anchored retail, like Cora, will continue to be attractive to investors, particularly in the current inflationary environment.'
The acquisition was carried-out through the French Barings OPPCI, managed by Edmond de Rothschild REIM France.
Gunther Deutsch, managing director and head of Europe real estate transactions at Barings, said: 'This portfolio was a unique opportunity to acquire a portfolio of dominant local retail assets.
'Our preferred sectors across Europe continue to be logistics, office and residential, but the quality of the portfolio, combined with a very strong tenant covenant, excess land and long leases, made it a compelling investment prospect.'
Josselin Granier, group real estate director at Louis Delhaize said: 'The terms and conditions of this pure S&L transaction were determined considering the group’s experience of similar deals operated over the last few years for hypermarkets, supermarkets, and shopping malls in various countries. Securing a long-term lease back with conservative rents and market conditions remains our core strategy.
'We took this decision after thoroughly assessing the quality of each of our real estate assets and we see it as an important leverage for further local development. We look forward to working with Barings as a long-term partner securing and developing our commercial footprint.'
Barings was advised on the acquisition by Othrys (commercial), LinkLaters (lease and structuring), ReedSmith (tax), Oudot&Associés (notary), Nerco (technical), ICF Antea Group France (Environmental). Cora was advised by BNP Paribas Real Estate (broker), Office Notarial Stanislas (notary) and Racine (lease, tax and structuring). Othrys will be retained as property manager for the portfolio.
