Spanish supermarket chain Mercadona is reportedly in negotiations to divest a portfolio of 30 supermarkets to the Israeli fund MDSR for nearly €200 mln.
According to Spanish press reports, the Fenix portfolio has some value-add potential and is believed to provide a total of 90,000 m2 of retail space. The package would be sold under a sale-and-leaseback structure similarly to last year’s sale of a further €180 mln worth of properties to LCN Capital Partners’ European Fund III.
The 27 properties known as Project Orange were located across Spain, with a strong concentration in Andalusia, Catalonia and Madrid. In the sale to LCN, they were leased back by the operator under 15-year leases.
Mercadona has historically made significant investments in the acquisition of land and buildings for its operation and as a result, it has significant real estate holdings. This transaction, the second of its type contemplated by Mercadona, allows the company to increase liquidity from their existing assets for reinvestment into their core business.
Savills Aguirre Newman is advising Mercadona on the sale.