ICG Real Estate (ICGRE) has agreed a deal to acquire a portfolio of 24 grocery stores from grocery retailer Lidl for €203.5m.
ICGRE is buying the portfolio on behalf of its Strategic Real Estate II Fund, and each asset will subsequently be let to Lidl on a long-term, triple-net lease.
The portfolio, which totals circa 50,000 sq m, comprises 17 UK assets, four Irish assets and three Spanish assets.
The stores are currently at various stages of construction and ICGRE has committed to forward purchase each newly developed Lidl store upon practical completion.
Krysto Nikolic, global head at ICG Real Estate, said: “This acquisition aligns perfectly with our investment strategy for SRE II. Through this sale-and-leaseback agreement we have secured a portfolio of brand new, purpose-built and mission-critical properties let on very long-term leases, delivering highly sustainable triple-net income from Lidl, one of the world’s leading grocery brands selling non-discretionary items to consumers.
“We are excited to be partnering with Lidl on this mutually beneficial transaction, which provides a route for the grocer to recycle capital back into its core business, whilst our investors benefit from secure, highly visible and growing future rental cashflows.”
