Topland bags €361m Eroski portfolio
Topland has agreed the purchase of a 15-strong retail portfolio with Spanish retailer Eroski in Spain’s biggest hypermarket sale and leaseback deal.
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.
Topland boss Sol Zakay said: 'Topland’s long term strategy of securing quality investments in continental Europe is further enhanced by this purchase.
'Topland’s appetite remains robust for sale and leasebacks and other transactions where the property fundamentals are strong.'
Jose Miguel Fernández Astobiza, development Manager of Eroski said: 'As a result of this joint venture with Topland, Eroski has now created a long term war chest for further acquisitions in the retail market to ensure its continuing growth above the competition in these difficult financial times.'
Cushman & Wakefield advised both parties.