Israeli-backed property investor Delek Global Real Estate (DGRE) has bought 12 supermarkets in Germany from retailer Metro for EUR 243 mln. Under the sale-and-leaseback deal, Metro subsidiary Real will lease 10 of the supermarkets until 2022 and the other two until 2020 and 2021 at an average annual total of EUR 17 mln. The rent will increase 6.7% every five years.
Israeli-backed property investor Delek Global Real Estate (DGRE) has bought 12 supermarkets in Germany from retailer Metro for EUR 243 mln. Under the sale-and-leaseback deal, Metro subsidiary Real will lease 10 of the supermarkets until 2022 and the other two until 2020 and 2021 at an average annual total of EUR 17 mln. The rent will increase 6.7% every five years.
Delek said it had secured two loans amounting to EUR 230 mln for the deal, including one for EUR 195 mln from a European bank. It also said it is looking for a partner to take a 20% in the properties.
'DGRE has again purchased a property with a quality tenant for a long period in a central area, and proved that even in these times it can use its connections to close deals and get good financing,' CEO Ilik Rozanski said in a statement.
Delek Real Estate is trying to increase sales by focusing on Europe. The company's assets include a British Foreign Office building in London, Adidas's headquarters in Herzogenaurach, Germany, and 73 petrol stations in Finland operated by Neste Oil Oyj.
