Barings acquires Spanish supermarket portfolio let to Carrefour for EUR73.4m

Barings, a diversified real estate investment manager, has acquired a portfolio of ten supermarket assets across five Spanish regions, on behalf of a core investment strategy for institutional investors, from Kennedy Wilson for EUR73.4 million.

The portfolio, which comprises a total of c38,800 square meters, is fully let to Carrefour, which has traded in these premises for between 22 and 50 years.

The majority of the assets benefit from prime city centre locations and good public transport connections, with two situated in Madrid, four in Barcelona and the others in Bilbao, Salamanca, Cádiz and Almería. Six of the units also offer generous parking provision with a total of c1,120 spaces across the portfolio.
Adolfo Favieres, Managing Director, Real Estate Country Head Spain, says: “This acquisition gives us a unique opportunity to access Spain’s resilient grocery retail market with the purchase of a portfolio of well-located assets, let to an established operator with a strong covenant. The fact that Carrefour has operated out of these stores for up to 50 years with long leases in place, demonstrates the security of income this portfolio generates, making it an attractive core investment for investors.”
Gunther Deutsch, Managing Director, Head of Real Estate Transactions – Europe for Barings, adds: “Supermarkets remain the preferred channel for food retail, representing 54 per cent of sales compared to online where the share is only 1.4 pert cent. We have adopted a highly focused strategy in Spain as we seek to the grow the portfolio, targeting high quality assets with secure income, underpinned by strong covenants.”