ICG Real Estate in a joint venture with GRR GARBE Retail, acting as local operating partner, and a German Institutional Investor, has completed the acquisition of a portfolio of 15 supermarkets and seven hypermarkets from leading Italian operator Coop.
The assets were purchased for €222 million ($228 million) on behalf of ICGRE’s Strategic Real Estate II fund and have been subsequently let to Coop on a 30-year lease.
Totaling 140,000 square meters (1.5 million square feet) in gross lettable area (GLA), the portfolio is primarily located in the wealthy northern Italy region of Emilia Romagna. The assets are situated in key locations and are mission critical for Coop, which has a 25 percent market share in the region.
The lease consists of a 30-year duration without a break clause, about twice the standard lease length for comparable transactions, plus full indexation on the Italian CPI and no landlord maintenance capex. The lease structure – rare in the