Property Week - November 5, 2008
Topland has paid €361m (£289m) for the portfolio, comprising 13 hypermarkets and two shopping centres, totalling 1.55m sq ft, in a deal which reflects a yield of approximately 6%. The properties are in the Basque area of Spain near the Pyrenees mountains.
The deal could be the first phase in a three-part sale and leaseback agreement between the two parties which could see Topland buying more than 50 Eroski properties for about €1bn (£808m).
Topland will provide equity for 30% of the first purchase with the remaining 70% coming from bank debt from a consortium of La Caixa, Banco Bilbao Vizcaya Argentaria, Banco De Sabadell, Banco Espanol De Credito, Banco De Vasconia and Caja Madrid.
Eroski has signed 25-year leases with fixed rental increases as part of the deal.
The company has been sitting on the sidelines of the investment market having amassed £1bn of equity from refinancing parts of its £5bn portfolio and through the sale of its 50% interest in a 35-strong, £950m Tesco portfolio, to Pearl Group’s Axial Investment Management in September last year.
Cushman & Wakefield advised both parties.
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