REIT Lar España concluded the sale of 22 supermarkets leased to Eroski, with a total combined area of approximately 39.000 sqm (28.000 sqm GLA) to European investment fund Blackbrook Capital for 59 million euro, representing a 24% revaluation over the 47.6 million euro the assets were originally purchased for and 2.2% higher than their latest assessment, carried out last June.
This sale will allow Lar España to increase its liquidity and capital strength. In its latest results report, corresponding to the first nine months of 2020, the company reported a 41% gearing on the assets’ value, with an average cost of 2.2%, around 100% of it at fixed rate and without relevant maturities over the coming months. The cash position was around 140 million euro, which would allow Lar España to face all the company’s costs, including financial costs, during the next four years. Following this sale, Lar España’s liquidity is now established at around 200 million euro.
This operation «adds to our company’s excellent track record, which has always been one of acquiring and rotating assets in a very selective, efficient and profitable way. With it we reinforce our available cash and our mid and long-term financial capacity. The economic result of the operation also corroborates both the accuracy of our estimates and the differential quality of the portfolio composed of shopping centres and retail parks we acquired throughout our journey», pointed out José Luis del Valle, the REIT’s chairman of the board.
Arvi Luoma, co-founder and managing director at Blackbrook, pointed out that «we are delighted to be working with Lar España in this operation. This portfolio fits perfectly within our strategy of investing on long-term net leases of high-quality assets of particular relevance, with tenants who are market leaders. This is one more very interesting investment for Blackbrook, since it is the first operation we carry out in Spain and within a segment which has shown a great growth potential and resilience during the pandemic».
Up until now, in the retail segment, in 2018 Lar España sold a store for 33.2 million euro to fund SPCI Pierre Plus, a commercial building in Nuevo Alisal, in Santander, a commercial building in Madrid’s municipality of Villaverde and two shops at Parque Galaria, in Pamplona to fund AEW for 11.5 million euro.
In this operation, Lar España was advised by Ramón y Cajal, KPMG, Óptima Project and Cushman & Wakefield. Blackbrook was advised by Latham & Watkins, Ernst & Young and RPE.