ICG Real Estate, the real estate division of global alternative asset manager Intermediate Capital Group (ICG), has purchased seven ambient, chilled and frozen distribution facilities from Wm Morrison Supermarkets in the UK for £220 mln (€255 mln).
The deal was conducted by ICG Real Estate’s Sale and Leaseback Team (ICG SLB).
Each of the prime properties is leased on an index-linked and triple-net basis for up to 25 years.
ICG was advised by CBRE, Ashurst & Hogan Lovells, while Knight Frank and Eversheds advised Morrisons.
Jo Goff, Morrisons CFO, said: ‘We continue to invest in our strategy of becoming a broader, stronger, more popular and more accessible business and this transaction will help to finance further investment. The acquisition of McColl’s earlier this year gave us a leading position in the UK convenience market and next year we are on plan to open a further five supermarkets across the UK, and to invest further in our manufacturing operations.’
Chad Brown, managing director at ICG Sale and Leaseback, commented: ‘The Morrisons portfolio is a prime example of the mission-critical real estate we are seeking to acquire. We look forward to working with Morrisons as they continue to grow their footprint.’
Chris Nichols, managing director and portfolio manager of ICG Sale and Leaseback, added: ‘This transaction is an excellent example of how Sale and Leaseback investing can serve as an alternate form of financing. We continue to seek similar pan-European mission critical opportunities as we actively deploy capital across Western Europe.’
