European Property Investors Special Opportunities (EPISO), the opportunistic fund advised by European real estate manager Tristan Capital Partners, has sold a portfolio of seven Spanish retail properties to private equity firm MDSR investments for €149 mln.
The portfolio is occupied by supermarket chains Eroski at 58% and Carrefour at 42%.
The seven asset portfolio includes one of the best performing hypermarkets in Spain: Garbera in the Basque country. Four other properties in the original portfolio acquired by the fund have already been sold separately in 2015 and 2016.
EPISO bought the original portfolio back in 2010 for €150 mln.
'We acquired this portfolio in the depths of Spain’s recession from Eroski in a sale and lease back transaction, we are selling it after assigning 42% of the leases to Carrefour and at a time when economic growth and improving retail sales provide a very timely opportunity to exit this investment,' commented Cecile Champy, executive director at Tristan. 'The disposal provided an exit and returns in line with original projections.'
Annalaura Benedetti, Head of MDSR in Spain commented: 'This transaction emphasizes our strong belief in the economic growth fundamentals of the Spanish market. Following our acquisition of five hypermarkets at the start of the year, this deal increases the geographical diversity of our portfolio and further strengthens our position in the Spanish market.'
The vendor was advised by CBRE and Linklaters.
Savills advised MDSR Investment.
Salvador González, director of retail investment, Savills Spain, said: “This portfolio offered MDSR great geographical diversity of product plus the added bonus of assets let to global operator Carrefour. In addition, Eroski’s financial performance is very much improving, making this an altogether attractive acquisition for the Israeli investment group.'
With this transaction, the value of MDSR's assets is close to €300 mln in the Spanish retail sector, split across retail parks, shopping centres and hypermarkets, having shifted from a ‘value add’ profile to a medium to long term position.
