Savills Investment Management acquires two supermarkets in Portugal for German special fund
Savills Investment Management acquires two supermarkets in Portugal for German special fund. Two long-term leased supermarket properties with around 5,600 sqm of rental space. European Food Retail Fund grows to a volume of 471.3 million euros. The international real estate investment manager Savills Investment Management (Savills IM) has acquired two urban supermarket properties in Portugal for its European Food Retail Fund (EFRF) as part of an off-market deal. The EFRF has further equity for additional purchases and is looking for suitable properties throughout Europe for this purpose. The special focus is on the target countries of Spain, Italy, the Netherlands, France, Ireland, Sweden and Finland.
The newly acquired supermarket properties are located in Vila Verde in the north of Portugal and in Montemor-o-Novo east of Lisbon
The newly acquired supermarket properties are located in Vila Verde in the north of Portugal and in Montemor-o-Novo east of Lisbon and are characterized by highly visible, strategically favorable locations with good accessibility. They were completed in December 2020 and March 2021 respectively and are leased on a long-term basis to Continente, the market leader in Portuguese food retailing. Both locations are operated under the urban convenience format “Continente Bom Dia”. The properties have BREEAM Very Good level in-use certifications. In addition, the tenant installed photovoltaic systems on the roofs after completion.
Kathrin Michalzik, Head of Fund Management Germany at Savills IM, says:
Kathrin Michalzik, Head of Fund Management Germany at Savills IM, says: “There is a good reason why we have struck again in Portugal for our European Food Retail Fund. The properties are ideally suited to our strategy of investing in high-quality, future-proof local supply locations that offer clear added value for both tenants and the local population. In addition, Portugal and Spain have been among the fastest-growing economies in the eurozone since the Corona pandemic. More moderate inflation, positive labour market dynamics, rising real wages and a booming tourism sector are driving growing retail sales on the Iberian Peninsula. The strong fundamentals in Spain and Portugal combined with an attractive price level open up exciting investment opportunities with an attractive risk-return profile.”
Ian Jones, Director of Investment at Savills Investment Management, adds:
Ian Jones, Director of Investment at Savills Investment Management, adds: “This is another excellent addition to our European-diversified core food retail portfolio – a sector that has proven its resilience during the pandemic, adapting to both higher inflation and changing consumer habits. The opportunities in this segment are particularly attractive in the current environment: investors will find systemically important properties with defensive, inflation-linked income, strong tenant credit ratings and a continued increase in rental demand in the food retail sector.”
The EFRF holds a total of 67 properties. The fund has already acquired supermarket portfolios in Portugal and Spain in 2024 and 2023. In total, the portfolio is diversified across seven European countries. Morais Leitão (MLGTS; legal), Arcadis (technical), PwC (tax/financial) and C&W (commercial) advised on the transaction. Images (Download): Montemor-o-Novo Supermarket, EFRF, Savills Investment Management
