Real assets investment manager PATRIZIA has expanded its European grocery retail platform through a major acquisition. The company secured a portfolio of 24 newly constructed Lidl supermarkets. The properties comprise a total lettable area of approximately 50,000 square metres and are fully let on long-term leases to Lidl's respective operating companies.
The contractual agreements link rents to the relevant consumer price index. This indexation secures inflation-linked income and highlights the defensive characteristics associated with the grocery retail sector in institutional investment. With this acquisition, PATRIZIA draws on more than twenty years of investment experience in European grocery retail and strengthens its partnership with the discounter.
Focus on Southern European locations
The newly acquired properties are spread across three core European markets, allowing PATRIZIA to expand its investment presence in Southern Europe in particular:
- —Ten supermarkets in Italy
- —Eight supermarkets in Spain
- —Six supermarkets in France
- —Around 50,000 square metres of lettable area across the entire portfolio
Structural demand in the local convenience segment
Christie Wright, Co-Head of Investment Management at PATRIZIA, stated that grocery retail continues to offer attractive investment opportunities. The combination of high-quality properties and strong operators forms the basis for steady income. In addition, this sector benefits from trends such as urbanisation and the ongoing demand for well-connected local amenities. The transaction aligns closely with the investment manager's strategic focus.
Across Europe, PATRIZIA currently manages retail properties with a total volume of approximately EUR 4.2 billion. The company intends to continue investing selectively in opportunities supported by long-term demographic shifts and evolving consumer habits.
