The net operating income generated by these properties currently stands at EUR1.16 million a year, which translates into a yield on purchase costs of approximately 11% a year.
The average of the remaining periods in the lease contracts for the nine properties is seven years, according to a report submitted by First Property Group to the London Stock Exchange.
At MEDIAFAX request, Lidl said the acquisition targets nine stores whose spaces were never part of the portfolio of lands held by Lidl Romania. It added the company’s activity will not be affected in any way and will go on as it has so far.
The profit before tax for the portfolio of properties is estimated at EUR720,000 a year.
First Property Group invested EUR1 million in the acquisition, in collaboration with investors which pumped the remaining amount up to EUR4 million. The remainder of EUR6.5 million is the contribution of third parties and was provided through a bridge loan put at their disposal by First Property Group. The loan will be re-financed through bank loan in the upcoming months.
First Property Group is investor and manager of real estate properties, operating in Great Britain and Central Europe.
End-September 2015, the fund held three properties in Romania, with a market value estimated at GBP7.4 million (EUR10 million), which generated profit before tax of GBP450,000 (EUR604,900) a year.
Discount store operator Lidl has 192 units in Romania. Lidl, part of German group Lidl & Schwartz, is present in 26 countries in Europe and has over 10,000 stores, over 100 logistics centers and 170,000 employees.