Savills Investment Management (Savills IM), has acquired a portfolio of four urban supermarkets in Portugal on behalf of its European Food Retail strategy. This acquisition brings the total value of the portfolio to approximately EUR 470 million. Additional capital is available for future acquisitions, with a continued investment focus on key European markets, including Spain, Portugal, Italy, the UK, Ireland, Benelux and the Nordics, the international real estate investment manager said.
The four Portuguese supermarkets are located in the towns of Lourel, Leça do Balio, Loulé and Mafra. Each property is let on a long-term lease to Continente, the market leader in Portuguese food retail. All four assets are strategically located within Portugal – in the Lisbon metropolitan area (2), near Porto and in the Algarve – and have strong catchment areas with positive population growth.
These well-established Continente Modelo supermarkets are highly attractive to consumers thanks to their strategic locations and broad product range. The tenant has also continuously invested to improve the properties’ ESG credentials, with initiatives including the installation of photovoltaic systems and modern building management systems, as well as upgrading to energy-efficient LED lighting.
Kathrin Michalzik, portfolio manager at Savills IM (Image credit: Savills IM)
“This is the latest in a series of acquisitions on behalf our European Food Retail strategy. Last year, we acquired a supermarket portfolio comprising four properties in Portugal for the strategy, also let to Continente. This exciting new opportunity for the strategy stood out due to the portfolio’s strong investment fundamentals – well-established retail properties in good urban locations with long-term leases to a leading food retailer. Portugal also benefits from solid market fundamentals and a positive economic outlook despite the challenging economic conditions in Europe” Kathrin Michalzik, Portfolio Manager at Savills IM, said in a statement.
Only a few supermarket portfolios have come onto the market in recent months. We are therefore all the more pleased that we were able to secure the attractive portfolio in Portugal for our strategy, leveraging our strong European investment platform. For further investments, we are continuing to focus on Spain, Portugal, Italy, the UK, Ireland, Benelux and the Nordics ” Ian Jones, Director of Investment at Savills IM, added.
Savills IM was advised on the transaction by MLGTS, Arcadis, C&W and PWC. RPE Capital Markets and PLMJ advised the seller.
Savills IM at a Glance
Founded: 2004 Headquarters: London Established locations: 15 Assets Under Managment: circa €26.1bn Funds & Mandates: 100+
