A series of funds advised by DRC Savills Investment Management (DCR SIM) will finance a portfolio of 21 supermarkets owned by Blackbrook Capital in Spain.
The portfolio, located in urban locations in the Basque Country and the Balearic Islands, is subject to long-term net triple leases to Eroski, the fourth largest food operator by turnover in Spanish territory.
Regarding this operation, Jon Strang, CEO of Blackbrook, explained that "the Spanish food retail sector remains very resilient and attractive and we believe that our Eroski assets are well positioned to support its potential and growing demand. The DRC team SIM excelled in their ability to deliver results in a timely manner and in line with our requirements, and we look forward to working with them in the future."
DRC SIM has provided the capital for this credit facility from its European Real Estate Senior Debt (ERESD) series of funds, which provide senior financing (€15m to €150m) throughout the UK and Western Europe, with a leverage ratio (loan to value) of up to 65%.
"We are delighted to have supported the Blackbrook team in financing this stable and high-yielding portfolio. This transaction underscores DRC SIM's commitment to deploying our senior debt (ERESD) strategy in high-yielding real estate assets. with high quality owners like Blackbrook," said Mark Gibbard, director of DRC SIM.
In the transaction, DRC SIM has received legal advice from Paul Hastings LLP (UK) and Cuatrecasas LLP (Spain) and commercial advice has been provided by Mount Street Mortgage Servicing Limited, JLL, Situs Asset Management and Watson Laurie. While, in the arrangement of the debt, Blackbrook has been advised by the debt and structured finance team of Cushman & Wakefield (C&W) in the EMEA region.