Blackbrook forward commits to acquire a build-to-suit portfolio of grocery retail sites
Upon completion, the supermarkets will be leased to Continente, the market-leading grocery retailer in Portugal
London, 18th February 2021 – Blackbrook Capital (Blackbrook), a European independent real estate investment firm focusing on mission-critical commercial property, has announced it has committed to acquire a portfolio of build to suit grocery stores in Portugal.
With construction on one site recently completed, and the remainder due for completion in phases over the next 12 months, the supermarkets will be acquired by Blackbrook upon completion and leased on a long-term basis to Continente, the leading grocery retailer in Portugal.
Continente is the largest entity within Sonae SGPS, S.A. (Sonae), a major Portuguese conglomerate with interests in food retail, health, sports, fashion and electronics retail, investment management, financial services, real estate, and telecommunication services. Sonae is one of the largest employers in Portugal with over 46,000 staff. Continente is the leading food retailer in Portugal generating revenues of €4.7 billion in 2019 with a market share of approximately 27%.
A defensive sector which has performed strongly and proved resilient throughout the Covid-19 pandemic, grocery retail is undergoing a transition in the face of e-commerce. Today, many grocery retail groups are focussing on smaller format convenience stores in order to increase saturation, meet consumer preferences and operate as “micro-logistics” hubs for serving local customers through home delivery and click and collect. The sites will serve under the “Bom Dia” brand, which are Continente’s smaller format convenience stores.
Arvi A. I. Luoma, Co-Founder & CEO of Blackbrook, said: “We’re pleased to have secured this transaction as Sonae has new grocery retail sites developed in line with its strategic growth objectives. Our ability to move quickly and offer both forward commitment and forward funding build to suit financing, allows developers to secure 100% development financing to suit their funding needs in an otherwise uncertain economic climate. This is a great example of how we can work closely as a partner with both developers and occupiers that are looking to expand and grow rapidly across specific strategic objectives.”
“Food retail is an important defensive sector and one that is undergoing rapid transition off the back of a strong period for sales during the Covid-19 pandemic. We see convenience stores playing a crucial role in the future of grocery retail.” added Luoma.