As part of a strategic sale-and-leaseback transaction, food retailer Lidl has sold a portfolio of 24 newly developed stores to investment manager Patrizia. International real estate consultancy JLL advised the retail company on the structuring and execution of the sale. All properties will remain within Lidl's operational store network under long-term leases.
Geographical distribution and floor space
The retail stores sold are spread across three core European markets in south-western Europe. Italy forms the quantitative focal point with ten locations, followed by eight properties in Spain and six stores in France. In total, the 24 newly built units comprise an aggregate sales space of approximately 50,000 square metres.
- —Ten newly developed properties in Italy
- —Eight retail locations in Spain
- —Six modern stores in France
- —Approximately 50,000 square metres of sales space across the overall portfolio
Focus on defensive and inflation-protected income
According to Sandra Ludwig, Head of Retail Investment EMEA at JLL, the completion underscores the sustained strength of the European investment market for food retail real estate. First-class assets combined with reliable operator creditworthiness continue to enjoy consistently high demand on the investor side.
The transaction enabled Lidl to achieve its strategic portfolio management objectives. On the buyer side, the acquisition offered investment manager Patrizia the opportunity to secure defensive and inflation-protected income streams in established core European markets.
JLL's advisory role involved aligning the food retailer's corporate objectives with the requirements of institutional capital. The outcome confirms the enduring appeal of high-credit grocery discounters as a stabilising element within the European investment environment.
