Eroski
“Working with W. P. Carey enabled us to recover our investment in these assets and use it in our core business. We are pleased to have such a well established firm as our long term financing partner. Their understanding of our current needs as a business as well as our longer term objectives enabled them to structure a financing that will serve us well now and into the future.”
- A. Fernández, Eroski Director of Expansion
Sale-leaseback Financing
Retail-Stores
February and June 2010
Eroski is the third largest food and consumables retailer in Spain, with over 100 hypermarkets and 1,200 supermarkets. The Company also franchises over 500 Aliprox fast-food outlets, and manages gas stations, drugstores and travel agencies. Food distribution is the focus of Eroski’s business, as the Company is the market leader in the Basque Country, the Baleric Islands and Cataluña.
Situation: Eroski was looking for a long term financing source of that would allow it to reduce debt and deleverage its balance sheet.
Financing: The W. P. Carey Group completed two transactions with Eroski spanning several months. The combined value of the sale leaseback financings totaled over $155 million. Eighteen properties, comprised of 16 retail facilities located throughout Spain and two warehouse logistics facilities located in Elorrio and Mallorca were leased back to Eroski on a long term basis.
Outcome: Eroski converted the value of its investment in the 18 properties into cash. The funds generated by the transactions were then used to advance its debt pay-down strategy as well as re-invest in its core business.
