LCN Capital Partners Acquires Italian DIY Portfolio
Portfolio of Seven Stores Occupied by Leroy Merlin, One of Europe’s Largest DIY Retailers
New York, USA & Milan, Italy – September 20, 2019 – LCN Capital Partners (“LCN”), a private real estate investment firm and a recognized leader in the primary corporate sale-leaseback and build-to-suit markets, today announced its acquisition of seven big-box stores located across Italy. The acquisition was completed through an Italian real estate fund in connection with InvestiRE SGR. The stores are occupied by Leroy Merlin, one of the largest do-it-yourself (“DIY”) retailers in Europe and the largest trading brand subsidiary which Groupe Adeo S.A. (“Adeo”) operates. Adeo is the largest DIY retailer in Europe and the third largest globally.
The portfolio, which totals more than 69,000 sqm, is leased to Leroy Merlin for a period of 30 years. The stores are located mainly in northern and central Italy and are all easily accessed via prominent arterial routes within their urban areas. These locations have high traffic flows and are among Leroy Merlin’s top performing assets in Italy.
Edward V. LaPuma, Co-Founder and Managing Partner of LCN Capital Partners added, “LCN is proud to have completed this transaction with Leroy Merlin, a recognised market leader in the European do-it-yourself industry. Importantly, our brand new 30-year lease is a perfect example of how we like to partner with our tenant-clients for the long-term, and we look forward to continuing to work together with Leroy Merlin to provide them with long-term, corporate financing solutions.” This acquisition marks LCN’s first investment in Italy and its first investment for LCN European Fund III.
Nicholas Burello, a Vice President at LCN Capital Partners mentioned, “Working with Leroy Merlin, a leader in the European do-it-yourself space, has been a great experience for LCN. This investment hallmarks our strategic focus: generating primary-market sale-leasebacks with resilient market leaders across Europe. We’re thrilled to close another transaction in Southern Europe which further demonstrates how companies can utilize a sale-leaseback to monetize fixed assets. Companies, such as Leroy Merlin, are able to invest sale-leaseback proceeds back into their core business and promote long-term, sustainable growth.
Massimo Veronesi, Real Estate Director of Leroy Merlin said, “This is Leroy Merlin’s first sale-leaseback in Italy, and it was a pleasure working with the professional teams at LCN and InvestiRE throughout this process. We hope that this deal being the first of a profitable partnership with LCN.”
About Leroy Merlin
Leroy Merlin is a is a multi-specialist retailer that gives people the possibility to improve their home by offering a complete range of products and services. The company has been growing since 1996 thanks to a business model founded on people, values and the notion of the sharing of learning, doing, wanting, having and being. Economic, environmental, social and cultural sustainability has always been at the core of our growth. Today Leroy Merlin operates 49 stores across Italy for a revenue of over €1.6 billion. It offers work to more than 7,000 employees. Leroy Merlin is also present in 14 countries around the world with over 99,000 collaborators and is one of the 14 companies of the international ADEO group. For more information, please visit https://www.leroymerlin.com/.
About LCN Capital Partners
Founded in 2011 by Edward V. LaPuma and Bryan York Colwell, LCN has assets under management in excess of $3.5 billion across its three US Dollar denominated funds, and three Euro denominated funds. Headquartered in New York City, LCN also has offices in London, Amsterdam, Cologne and Luxembourg.
LCN Capital Partners is a recognized leader in the primary sale-leaseback and build-to-suit markets, where investments and leases are directly originated with corporate users of mission critical real estate. LCN delivers a long-term solution for its tenant-clients by providing a non-bank capital resource, efficient monetization of on-balance sheet real estate, continued operational control of key assets, enhanced financial metrics, and potential tax benefits. LCN’s investing partners benefit from the long-term and inflation protected distributions that it supplies. For more information, please visit: https://www.lcnpartners.com/.
About InvestiRE SGR
InvestiRE SGR is one of the leaders in the Italian real estate market, with over €7 billion of real estate under management and a specialized team of some 160 professionals with extensive experience in the real estate sector (offices, residential, retail, healthcare, hotels and logistics). InvestiRE provides fund management, asset management, advisory, acquisition and development services and partners with Italian and international investors. For more information, please visit https://www.investiresgr.it.
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