Savills Investment Management acquires further supermarket portfolio in Portugal on behalf of European Food Retail strategy
12th December 2024
Frankfurt Main, 12 December 2024. Savills Investment Management (Savills IM), the international real estate investment manager, has acquired a portfolio of four urban supermarkets in Portugal on behalf of its European Food Retail strategy. With this transaction, the strategy’s portfolio has grown to a volume of around EUR 470 million. Additional equity is available for future acquisitions, with a continued investment focus on Spain, Portugal, Italy, the UK, Ireland, Benelux and the Nordics.
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.
Savills IM was advised on the transaction by MLGTS, Arcadis, C&W and PWC. RPE Capital Markets and PLMJ advised the seller.
Kathrin Michalzik, Portfolio Manager at Savills IM, says:
“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.”
Ian Jones, Director of Investment at Savills IM, adds:
“Food retail was one of the few sectors to benefit from government lockdown restrictions as a result of the coronavirus pandemic. It is not least this high level of crisis resistance combined with stable returns that has brought the asset class into the focus of various investor groups. 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.”
CONTACT US
Citigate Dewe Rogerson
Will Easton
+44 (0)20 7025 6400
SavillsIM@citigatedewerogerson.com
European Food Retail strategy now totals a volume of around EUR 470 million