|
|
Eroski sets up a company with Topland to manage its portfolio of hypermarkets in Spain
It is the intention of the two parties to set up a joint venture which will become the owner of part of Eroski’s hypermarkets. This operation, which includes 12 hypermarkets, is worth 361 million euros and is the biggest sale & leaseback operation involving hypermarkets to be carried out in Spain. The surface area of the hypermarkets ranges from 5,000 m2 to 11,000 m2.
Eroski transfers the properties to this company to promote its growth and job creation, using them on a long term leaseback basis, thereby strengthening the backbone of its retail business. In this way, it will reinforce its strategy of growth and investment, which has exceeded 1,200 million euros in the last two years.
The history of this operation dates back to the summer of 2001, when Eroski sold nine properties to the ING company and the end of 2002, when it sold another seven stores to Eurohypo Real Estate Investment Banking.
The agreement enables Eroski to free up capital from its property assets, working together with Topland to achieve common goals. The aim of the strategy is to continue improving the value of the assets in their portfolio.
Although this is the first operation that Topland has carried out in Spain, this company is very well known in the UK as a specialist in retail investments with a long history in sale & leaseback transactions carried out with notable operating partners, helping to generate added value for both partners in the long term. The law firm which acted as consultants in the operation were Hammonds and DJV Abogados for Eroski, and Freshfields for Topland.
http://www.eroski.es