Savills Aguirre Newman has been instructed by Mercadona - a major food distributer in Spain - to sell a portfolio of Spanish supermarkets as part of the retailer’s expanded sale and leaseback strategy.
The 32 supermarkets together comprise 90,000 m2 in total, with the average size standing at 2,800 m2 per store. The buildings, which are spread across the country are located in urban, commercially consolidated areas according to the broker and are complete with onsite parking facilities.
Savills said that the opportunity included a 'value-add' angle for the potential buyer.
Earlier this year, Mercadona earmarked a potential 36 stores for sale-and-leaseback disposal, the so-called Project Orange portfolio, instructing CBRE to find a buyer. They agreed a deal in June with US private equity investor LCN Capital Partners for 27 of the properties on minimum 15 year lease terms at a reported price of €180 mln.
According to a market source, the proposed portfolio raised such significant interest that Mercadona has since reassessed what else it can sell.
In recent weeks, JLL has been mandated to sell the Jade portfolio, comprising six assets, and now Savills has been instructed to dispose of the so-called Fenix portfolio comprising 32 properties.
Food retailer trend
Last month, Savills released a report suggesting that retail sale and leaseback transactions were likely to pick up again after the Covid-19 crisis has passed.
Supermarket retailers drove significant amounts of activity in this area last year, and continue to attract investor attention due their robust performance during the pandemic.
Lydia Brissy, director in the European research department, Savills, commented: 'Food retailers have been beneficiaries of a huge shift in consumer behaviour; almost overnight. For many, the strong resilience during this period has caught the attention of investors to help them to diversify their offer.
'For food retailers, Covid-19 has highlighted the need to develop their omni-channel strategy by offering/expanding delivery and drive-in services, which will require investment.'
Other key, recent deals have seen Supermarket Income REIT secure a portfolio of Waitrose stores in the UK, as well as creating a joint venture with the BA pension fund to buy 26 Sainsbury's supermarkets.
A series of Italian grocery portfolios were also brought to market in May amid rising interest.
