ICG Real Estate acquires portfolio of Morrisons distribution facilities for £220 million

12 December 2022

“The Morrisons portfolio is a prime example of the mission critical real estate we are seeking to acquire,” says ICG’s Chad Brown

ICG Real Estate, the real estate division of ICG, today announced that its Sale and Leaseback Team (“ICG SLB”) acquired a portfolio of seven prime, ambient, chilled and frozen distribution facilities from Wm Morrison Supermarkets for £220 million.

Each property is leased on an index linked and triple-net basis for a term of up to 25 years.

ICG’s Sale and Leaseback team focuses on the acquisition of core plus and mission critical assets in Europe, which can generate long term, inflation-protected income streams. The team is comprised of 12 individuals with strong on the ground relationships in key geographies.

Jo Goff, Morrisons Chief Financial Officer, said: We continue to invest in our strategy of becoming a broader, stronger, more popular and more accessible business and this transaction will help to finance further investment. The acquisition of McColl’s earlier this year gave us a leading position in the UK convenience market and next year we are on plan to open a further five supermarkets across the UK, and to invest further in our manufacturing operations.

Chad Brown, Managing Director at ICG Sale and Leaseback, commented: The Morrisons portfolio is a prime example of the mission critical real estate we are seeking to acquire. We look forward to working with Morrisons as they continue to grow their footprint.

Chris Nichols, Managing Director and Portfolio Manager of ICG Sale and Leaseback, added: This transaction is an excellent example of how Sale and Leaseback investing can serve as an alternate form of financing. We continue to seek similar pan-European mission critical opportunities as we actively deploy capital across Western Europe.

ICG was advised on the transaction by CBRE, Ashurst & Hogan Lovells.

Morrisons was advised by Knight Frank and Eversheds.

Source: ICG
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