The investment management arm of Savills has acquired a portfolio of four urban supermarkets in Portugal.
The four Portuguese supermarkets are located in the towns of Lourel, Leça do Balio, Loulé and Mafra. Two are in the Lisbon metropolitan area, one is near Porto, and the other is in the Algarve.
Savills Investment Management now has a portfolio worth €470.
Kathrin Michalzik, portfolio manager at Savills IM, said: “This is the latest in a series of acquisitions on behalf our European Food Retail strategy.
“Last year, we acquired a supermarket portfolio comprising four properties in Portugal for the strategy, also let to Continente.
“This exciting new opportunity for the strategy stood out due to the portfolio’s strong investment fundamentals – well-established retail properties in good urban locations with long-term leases to a leading food retailer.
“Portugal also benefits from solid market fundamentals and a positive economic outlook despite the challenging economic conditions in Europe.”
Each property is let on a long-term lease to Continente, the market leader in Portuguese food retail.
Savills has equity available for future acquisitions, with an investment focus on Spain, Portugal, Italy, the UK, Ireland, Benelux and the Nordics.
The investment manager said the tenant has continuously invested to improve the properties’ ESG credentials, with initiatives including the installation of photovoltaic systems and modern building management systems, as well as upgrading to energy-efficient LED lighting.
Ian Jones, director of investment at Savills IM, added: “Food retail was one of the few sectors to benefit from government lockdown restrictions as a result of the coronavirus pandemic.
“It is not least this high level of crisis resistance combined with stable returns that has brought the asset class into the focus of various investor groups.
“Only a few supermarket portfolios have come onto the market in recent months. We are therefore all the more pleased that we were able to secure the attractive portfolio in Portugal for our strategy, leveraging our strong European investment platform.
“For further investments, we are continuing to focus on Spain, Portugal, Italy, the UK, Ireland, Benelux and the Nordics.”
