Food retailer Lidl has sold a portfolio of 24 newly developed grocery stores to investment manager Patrizia. The transaction was completed as part of a structured sale-and-leaseback process. Real estate consultancy JLL advised and supported the retail chain on the preparation and closing of the sale.
The properties are spread across three core European markets and reflect modern store standards. Italy represents the quantitative focus with ten locations. In Spain, eight stores change ownership, while a further six properties are located in France. The total portfolio comprises around 50,000 square metres of lettable sales area.
Long-term leases and defensive income structures
A key element of the transaction is the long-term location security for the discounter. All 24 retail properties remain within Lidl's operational network via long-term leases. For the buyer Patrizia, this contractual arrangement provides predictable rental income, underpinned by the creditworthiness of an internationally established operator.
- —Transaction scope: 24 newly developed grocery stores
- —Geographic distribution: ten properties in Italy, eight in Spain and six in France
- —Floor area: around 50,000 square metres of total sales area
- —Contract model: Long-term leaseback by Lidl
Sandra Ludwig, Head of Retail Investment EMEA at JLL, emphasised in the context of the deal the unabated strength of the European grocery retail investment market. She noted that high-quality properties with first-class operator covenants remain in strong demand among investors.
Ludwig also highlighted that JLL had successfully supported the retail company in realising its strategic objectives. At the same time, the portfolio was successfully matched with institutional capital seeking defensive and inflation-protected income streams in core European markets.
