Principal Real Estate announced this Tuesday the purchase of a supermarket in Portugal, specifically the Continente de Setúbal building, for 10.2 million euros. The asset was acquired on behalf of the Principal Eurozone Durable Income Fund (PEDIF).
This supermarket has a total of 2,700 square meters and is leased for 15 years to Continente (Sonae). For Robert Leadbetter, Fund Manager of the Principal Eurozone Durable Income Fund, comments in a statement that “food retail real estate has been gaining prominence during the pandemic”. Through these businesses, investors obtain «income from leases indexed to inflation, stable, typically long-term, supported by the robust performance of the main retail tenants», quotes IPE Real Assets.
This business «is exactly the type of asset we are looking for to complement PEDIF's investment strategy», in a context of rising inflation and interest rates.
PEDIF focuses on assets with long leases in Europe, of at least 14 years, located throughout the Eurozone, namely in Germany, Belgium, Luxembourg, the Netherlands or France.
