Property Week - August 18, 2010
Rockspring Property Investment Managers has bought a portfolio of 21 Spanish food stores for €45m.
The fund manager has bought the properties, all in the Basque country and Majorca, in a sale-and leaseback-deal with Spanish food retailer Eroski.
Eroski has signed a 20-year lease on the entire 320,000 sq ft portfolio, which was bought on behalf of the single-client account of a UK pension fund.
The UK pension fund account is targeting un-leveraged core and core plus returns across central and western European retail, office and industrial properties – with a toal spending power of €300m.
James Preston, Rockspring Iberia’s managingdirector, said: “Food retail has proven to be a well performing, defensive sector across Spain both before and during the economic downturn; we are therefore pleased to have secured exposure to this successful asset type.
“These properties appealed to us due to the combination of their prime location, strong local economic fundamentals, sustainable rental levels and the quality of Eroski as a tenant.
“As such, the investment provides a high degree of insulation from any further effects of the downturn, as well as being well positioned for any recovery.”
José Miguel Fernández Astobiza, Eroski’s development manager, said “This portfolio disposal shows further progress in our strategy as we seek to dispose of the freehold interest in our properties in order to release capital to develop our commercial retail activities.”
Cushman & Wakefield advised Eroski and Nicea Abogodas advised Rockspring.
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