Pradera acquired the two hypermarket assets on behalf of German pension fund Nordrheinische Ärzteversorgung (NAEV), whose real estate fund is administered by Universal-Investment Luxembourg. The new acquisitions will be added to the existing six assets to create a portfolio of eight assets in northern Spain with a value in excess of €200m.
Pradera advised Universal-Investment on the acquisition and has been retained by Universal-Investment to manage the new properties together with the existing portfolio under a long-term asset and property management contract.
The Eroski hypermarkets were first acquired in 2018 by ICG’s Sale and Leaseback Fund (ICG SLB I). The assets are located in the Spanish regions of Vitoria and Leioa and together total nearly 30,000 sq m, let on long leases to the Eroski Group. They are the first two assets to be sold by ICG SLB I.
Chris Nichols, Portfolio Manager at ICG said:
“We are delighted with the first disposal from the SLB Fund, which is an excellent result for our investors. This part sale of our Eroski portfolio has crystalised a material outperformance and endorses our core thesis of value creation through the acquisition of mission critical real estate. The food retail sector remains highly sought after, demonstrating its durability throughout the pandemic. Grocery real estate investments across both Europe and the UK remain a key target for us as we continue to build of the success of the Sale and Leaseback Fund in 2022.”
Peter Davies, Fund Director at Pradera said:
“The successful purchase of these two new assets in northern Spain complements the existing portfolio of six assets that we acquired on Universal-Investment’s behalf at the end of 2020. The acquisition of these hypermarkets is part of a European long income, grocery-focused investment strategy on behalf of NAEV, designed to deliver sustainable returns in one of real estate’s most sought-after asset classes. We will continue working with Universal-Investment and NAEV to source similar assets with comparable characteristics in other European countries. We believe this sector of the retail property investment market offers strong fundamentals particularly to those investors seeking more stable returns in such uncertain times, and it will be our focus for further investment during the course of 2022 and beyond.”
Colin Campbell, Chairman of Pradera, also commented:
“The acquisition of this additional portfolio on behalf of our client NAEV underlines our ability to source off-market transactions in a highly competitive sector of the retail property market. We will continue to build our capability in this sector having already identified a number of new opportunities in the retail real estate long income market.”
Pradera is a leading retail real estate investment management specialist active in continental Europe, the UK and China. Founded in 2000, Pradera’s €3.0 billion portfolio comprises 53 shopping centres and retail parks with more than 2,000 stores in the UK, Spain, Italy, Germany, Poland, France, the Czech Republic, Greece and Turkey (December 2021). www.pradera.com
The Universal-Investment Group is one of Europe’s leading fund service platforms and Super ManCos with around EUR 733 billion in assets under administration, about 2,000 mutual and special fund mandates and a workforce of more than 1,000 at locations in Frankfurt am Main, Luxembourg, Dublin and Krakow. Founded in 1968, the company is an independent platform for asset managers as well as institutional investors offering structuring and administration solutions as well as risk management for Securities, Real Estate and Alternative Investments. The companies UI Labs, UI Enlyte and CAPinside complement the group’s innovative service offering. Universal-Investment is a signatory of the UN Principles of Responsible Investment. (as of 30 November 2021)
More information available at: www.universal-investment.com
ICG provides flexible capital solutions to help companies develop and grow. We are a global alternative asset manager with over 30 years’ history, managing $69bn of assets and investing across the capital structure. We operate across four asset classes: Structured and Private Equity, Private Debt, Real Assets, and Credit.
We develop long-term relationships with our business partners to deliver value for shareholders, clients, and employees, and use our position of influence to benefit the environment and society. We are committed to being a net zero asset manager across our operations and relevant investments by 2040.
ICG’s real estate division has over $7.4bn of private debt and private equity assets under management in its core strategies of Senior Debt, Partnership Capital (providing whole loans, mezzanine, and preferred equity), Residential Development Finance and Sale and Leaseback.
ICG is listed on the London Stock Exchange (ticker symbol: ICP). Further details are available at www.icgam.com. You can follow ICG on LinkedIn and Twitter.
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