The portfolio of assets is located in the Basque Country and Navarra and consists of six individual hypermarkets totalling 56,158 sq m let on long leases to the Eroski Group acquired at a price close to €130m. Pradera advised on the acquisition and has been retained by Universal to manage the portfolio under a long-term asset and property management contract.
Peter Davies, Fund Director at Pradera, explained that the transaction was complementary to the existing portfolio of retail assets currently managed by Pradera: ‘The projected extremely long income stream secured against the covenant of the dominant grocery operator in this region of Spain was from the outset one of the most attractive reasons for acquiring this portfolio. We have been looking at the long income market for some time and thought the acquisition of this portfolio perfectly demonstrated the key characteristics of such a strategy. We will certainly be looking at more portfolios in this sector.’
Colin Campbell, Chairman of Pradera, commented: ‘The acquisition of this portfolio on behalf of a new client, Nordrheinische Ärzteversorgung, demonstrates Pradera’s ability to source and close off-market transactions of the highest quality in the most testing of market conditions in a part of the retail property sector in which we have huge confidence.’