Topland Completes EUR361 Million Sale and Leaseback in Spain

EROSKI has created a joint venture company with Topland to hold a part of its portfolio of hypermarkets in Spain. Cushman & Wakefield (C&W), the global real estate consultant, has been the advisor in the deal.

The intention of both parties is to create a single JV that will own most of EROSKI’s hypermarkets in Spain. The transaction amounts to 361 million euros, the biggest hypermarket sale & leaseback transaction made in Spain, includes a total of 12 hypermarkets. The individual hypermarkets have surface areas within a range of 5,000m squared – 11,000m squared.

EROSKI has placed these properties in the new joint venture vehicle to support business creation and the creation of new employment; the hypermarkets are leased back on a long lease term, which in turn will reinforce the company’s main business activity (distribution and sale of goods in supermarkets and hypermarkets). This reinforces their line of strategic growth and sustainable investments which has surpassed the 1.2 million euros over the last two years.

The Agreement allows EROSKI to release capital from its properties working together with Topland on common goals to continue to improve the value of these assets within the portfolio

Although this is their first transaction in Spain, Topland is a well known in the UK as a retail specialist investor with a significant track record in sale and leasebacks, working with operating partners and creating added value for both parties in the long term.

Sol Zakay of Topland stated that, “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 & leaseback and other transactions where the property fundamentals are strong.”