Principal Real Estate long-income fund buys supermarket in Portugal | News

Principal Real Estate has acquired a supermarket in Portugal for its open-ended eurozone long-term fund.

The real estate arm of Principal Global Investors announced that it has acquired the €10.2 million property in Setúbal, south of Lisbon, on behalf of the Principal Eurozone Durable Income Fund (PEDIF).

The 2,700 m² supermarket is leased to Continente, which belongs to the Portuguese food retailer Sonae, for a period of 15 years.

Robert Leadbetter, fund manager of the Principal Eurozone Durable Income Fund, said: “Food retail real estate has been one of the standout asset types during the pandemic, providing investors with stable, typically long-term income from inflation-linked leases, supported by robust performance from underlying essential retail users.

“In the current economic backdrop of high inflation and rising interest rates, this is exactly the type of asset we are looking for to complement PEDIF’s investment strategy.”

PEDIF is designed to provide institutional investors with access to long-term real estate investments in Europe, targeting commercial real estate investments in all sectors with fixed leases of at least 14 years, located across the euro area with a weighting in Germany, Benelux and France .

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