El Arbol Completes $97 Million Sale Leaseback of 44 Supermarkets in Spain

GE Real Estate Iberia recently closed on a €75 million (U.S.$97 million) sale-leaseback deal with Spanish retailer El Arbol for 44 properties toward the north of Spain. Including 32 high street supermarkets, five convenience stores, three food logistics warehouses, three mixed-use assets and a training center, the deal is the second largest in Spain in the past year, according to GE Real Estate.

"We bought the El Arbol properties at a 6 percent to 6.5 percent yield," Marcelo Horcel, managing director of GE Real Estate Iberia, told CPN. "That yield is very much in line with retail markets in Spain, where yields are still tightening. High street retail in prime areas in Spain yields around 5 percent, and shopping centers around 5.5 percent to 6 percent. El Arbol is either the leader or No. 2 in its markets."

The El Arbol properties GE acquired, which are 97 percent occupied, comprise 72,000 square meters and are located in the Spanish regions of Asturias, Cantabria, Castilla y Leon, Extremadura and Galicia, and are on medium- to long-term leases. Sphere: Related Content