Israeli private property fund MDSR has purchased a portfolio of 21 supermarkets that were bought by Rockspring (now Patrizia) in 2010. According to market sources, the portfolio has traded for over €50 million.
The portfolio has 14 units in the Basque Region generating 70% of the total rent which amounts to over €3.6 million per annum. The rest of the properties are located in Balearic Islands (4), in La Rioja (2) and Navarra (1). According to market sources, the portfolio has a good performance with almost 80% of MGR reporting sales to rent ratios of below 4%.
Eroski is one of Spain’s largest food retailers and the leader in the Basque region, in northern Spain. The group played a key role as a retail property developer during the 90s and early 2000s and bougth rival firm Caprabo in 2007 resulting in a decade of financial difficulties when the Spanish property bubble burst.
The parent cooperative, EROSKI S.Coop, signed a refinancing agreement during 2015 allowing the company to focus on its strategic plan to improve competitiveness and profitability. In fact, EROSKI S.Coop., generated a profit of over €13 million in 2017.
The financing pool requried a series of property divestments which have been completed and include the sale of Parque Almenara in Lorca to OakHill, the sale of non-strategic properties to DIA and Carrefour and the sale & leaseback of prime assets on long term leases to INVESCO, ORES and ICG Longbow. During 2018, the food distributor negotiated a new finance agreement for the period 2019-2023 with banks and has since become a more attractive entity in the eyes of international investors.
About Patrizia Inmobilien
PATRIZIA Immobilien AG (PAT:Xetra) is a full service real estate company listed on the XETRA stock exchange in Frankfurt, Germany. The Company’s services include real estate management, building and construction, project development, and asset management.
Mr. Wolfgang Egger is the Founder of Patrizia Immobilien AG and serves as its Chairman. Mr. Egger has been the CEO at Patrizia Immobilien AG since August 21, 2002. He also serves as Managing Director of First Capital Partner GmbH, FCP Project A GmbH and W.E. Verwaltungs Gmbh, a general partner of WE Vermogensverwaltung GmbH & Co. KG. He served as Deputy Chairman of Eurobilia AG, Cologne until November 29,
MDSR is run by Ran Shtarkman and entered the Spanish market in 2016 with the acquisition of a Carrefour hypermarket and gallery in Vigo, Galicia. The fund is currently the owner of one of Spain’s largest hypermarket portfolios including the Altadena 7 hypermarket and 4 gallery-portfolio which was bought in 2017 for over €150 million. MDSR also own the Joparny portfolio which was acquired in February 2017 and consists in 5 Eroski and Carrefour hypermarkets.
According to Bloomberg: Mr. Ran Shtarkman, has an served as the CEO and President of Plaza Centers N.V., a subsidiary of Elbit Imaging Ltd. since September 2006 and 2007 respectively until July 31, 2015. He also served as a Co-CEO of Elbit Imaging from January 1, 2010 to August 1, 2012