DIFF Assets-managed fund to acquire 4 LIDL Lietuva stores
DIFF Capital, a fund managed by the collective investment undertaking DIFF Assets, and Lidl Lietuva have signed an agreement on the acquisition of the Lidl store building in Molėtai. The financing for the acquisition was provided by SEB bankas. Letters of intent have also been signed for three more Lidl store buildings in the Klaipėda and Vilnius districts, which are to be completed this year.
The shop buildings are acquired by DIFF Assets in conjunction with long-term leaseback agreements. Lidl will lease and continue to operate all of them and use the proceeds to finance the further expansion of the store chain.
Vita Žutautaitė, Director of DIFF Assets, points out that the investment in Lidl’s store buildings is in line with the company’s strategy to invest in reliable real estate assets that generate maximum returns.
“Investments in these objects ensure DIFF Assets’ long-term cooperation with Lidl, a reliable and successfully expanding company in Lithuania, and at the same time a stable return for our investors,” says V. Žutautaitė.
“We are continuing our expansion in Lithuania, building new stores in various cities across the country. Attracting an investor in the store buildings will allow us to use the funds to continue the company’s expansion strategy in Lithuania,” says Marius Kybartas, Head of Lidl Lietuva’s Central Office and Member of the Board.
The sale of these Lidl store buildings was advised by Newsec.
Tadas Jonušauskas, Head of Business Banking at SEB Bank, says that the bank welcomes the financing of retail real estate, as food retail is one of the most stable business sectors in the long term.
“Our business analysts’ calculations show that food retailing showed an impressive 8.1% growth last year. In the first quarter of this year alone, the sector grew by 5.7% compared to the same period last year. Therefore, high-quality real estate dedicated to this segment generates stable cash flows and makes these assets attractive for bank financing and stable returns for investors,” says T. Jonušauskas.
The Lidl store in Moletai was opened on 10 June at Aplinkkelio g. 163B, on the Vilnius-Utena highway. The store is in the usual format of the supermarket chain, with an area of 2,200 sq m. Currently, there are 73 Lidl stores in 28 towns in Lithuania.
The funds managed by DIFF Assets invest in residential real estate and income-generating commercial real estate. Among the projects in which DIFF Assets has invested are the co-living projects Liv_in Vilnius Ozas and Liv_in Vilnius Newtown, the Bastionai Houses development in the centre of Klaipėda, the Parko Pakrantė apartment building project in Klaipėda, and other projects. At the beginning of this year, DIFF Assets acquired the former ERGO head office building in Vilkpėde, where it plans to build modern office and hotel buildings.