Merlin Properties sells a portfolio of 30 supermarkets for €110M

The Spanish REIT, Merlin Properties, has finalised an agreement with the American real estate manager Realty Income for the sale of a portfolio of 30 supermarkets. The properties are currently rented to Caprabo. 

The portfolio, located entirely in Catalonia, has a GLA of 55,388 sq m and is valued at 110 million euros – representing the largest transaction of this type of asset in Spain during 2021. Merlin acquired this portfolio of 33 supermarkets in 2015 from the Catalan company Caboel, initial owners of Caprabo. In recent months they have sold some of these assets. These account for just 1% of their current portfolio, which has properties worth 12,893 million.

Merlin explains that the portfolio of 33 establishments comprises 19 local supermarkets and 14 in big-box format. 71% of the rental income comes from Barcelona and the remaining 29% from Tarragona, Lleida and Gerona. The chain has been operating these supermarkets for 22 years. 

CBRE carried out the sale on behalf of Merlin Properties. The company listed on the Ibex 35 continues with its plan to rotate non-strategic assets. Throughout this year they have sold assets that amount to 227 million euros, exceeding the divestment plan for 2021, which was 150 million. These sales have been made with a 5.7% average premium over the appraised value and they include the supermarket portfolio, a commercial premise, a minority stake in a hotel, 3 non-strategic logistics assets, an office building in Madrid, a BBVA branch, two supermarkets and a stake in Aedas real estate.

Realty Income was advised by Cushman & Wakefield on their third deal within the sector in Spain. In September the company listed on the S&P500 bought 7 Carrefour supermarkets for 93 million in a sale-leaseback agreement. One month later, they acquired 3 other Carrefour supermarkets for 64 million. 

The American giant, who specialises in retail real estate, is valued at 40,000 million euros taking into account 8,120 million euros in debt. They own around 7,000 properties with its main tenants being 7-Eleven and Walgreens pharmacies. Its European portfolio is close to 3,000 million euros with its main tenant being Sainsbury’s supermarkets.