The North American REIT WP Carey has acquired a portfolio of 26 properties for rent, located in different parts of Spain, for a total value of 130 million euros.
Until now, the portfolio was owned by Mémora, the main provider of funeral services in Iberia, who has committed to a 30-year triple net lease, with annual rent increases based on the CPI in Spain.
According to the company, these are "well-located and fundamental assets in a stable sector", located mainly in Barcelona and surrounding cities, where Mémora has a 35% market share, as well as in other "highly sought-after locations from other localities". In addition, 45% of the portfolio has an "excellent" Breeam rating.
"We are excited to be involved in what we hope will be one of many bespoke investments with Mémora, which continues to grow its market share across the Iberian Peninsula. Its strong position in the market, coupled with the importance of these assets and the leasing in the long term, they have made this transaction a perfect fit for our investment criteria, while also broadening the diversity of our European portfolio," said Christopher Mertlitz, director of European investments at WP Carey.
For the fund, which is listed on the New York Stock Exchange, Spain represents "an important market", in which it has invested some 860 million euros since 2009.
As for Mémora, this operation "satisfies its immediate needs" and "supports its long-term growth," explains Pablo Callejo, executive director of CBRE Investment Banking, who has advised on the sale.
Currently, the funeral company has 131 funeral homes and crematoriums, 16 cemeteries and 42 offices between Spain and Portugal, and its expansion plans for the next decade include the opening of new facilities, according to Juan Jesús Domingo, CEO of Mémora.
