Savills invests 39 million euros in the purchase of four supermarkets in Port...

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The international real estate investment manager Savills Investment Management has closed the acquisition for its European Food Retail Fund of a portfolio of four supermarkets in strategic locations in Portugal (Oporto, Algarve, Castelo Branco and Nazaré) for a price of 39 million euros.

The four supermarkets acquired by the company have a total area of ​​more than 21,600 m2  and have long-term lease agreements with Continente, the leading food operator in Portugal, majority owned by Sonae Group. With this operation, Savills IM adds four stable assets to its portfolio under management with a solid track record of cash generation and long-term returns.

“Essential retail and food are very resilient sectors Phone Lead with solid fundamentals that, in contexts of uncertainty, allow their owners to better navigate economic turbulence. The four newly acquired assets fit very well into our strategy and will add value to our investors: they are leased on a long-term basis to the market leader and their revenue track record is very encouraging,” says  Fernando Ramírez de Haro, general director for Spain and Portugal by Savills IM

The assets have the highest certifications in Environmental, Social and Corporate Governance (ESG) matters; including the BREEAM Good seal. For this operation, Savills IM has received advice from RPE, Uría Menéndez, Savills Tech. Advisors and PwC.



Solid foundations of Portuguese retail
According to Savills Investment Management's 2023 global investment outlook report, essential retail has shown its resilience during the pandemic and will remain a relatively safe haven as demand for essential items will remain , while it is demand for luxury goods is likely to decline.

Thus, supermarkets and supermarket-anchored retail parks have shown exceptional resilience since the beginning of the pandemic. The retail real estate market continues to pose challenges in general terms , although it presents interesting aspects and there are still opportunities.

In this sense, the Portuguese economy enjoys solid economic fundamentals and positive economic prospects. The retail food sector remains competitive, with major operators expanding, as well as investing in upgrading their existing units , increasing sales floor efficiency and taking advantage of more efficient logistics activity.