Ten stores in the portfolio will ultimately operate under the “Coop365” brand, Coop’s newly formed green discount supermarket, while the remaining store will continue under Coop’s “Kvickly” hypermarket brand. Proximity food retailers have benefited from increased consumer interest in at-home cooking, a trend accelerated by the COVID-19 pandemic, and discount retail in particular, has been a growing sub-sector in Denmark, taking market share from other forms of retail.

The portfolio is predominantly composed of established food retail properties located in dense urban infill locations. Strict planning laws and licensing requirements in Denmark make opening new retail stores difficult, providing inherent value to established food retail sites.Karolis Adlis, Senior Vice President, Investments, W. P. Carey said:

“We are happy to announce another grocery sale-leaseback with an established national player. The defensive nature of the asset class coupled with the strong locations of these stores made this a very attractive investment for us. The Nordic countries continue to be a key market for W. P. Carey having invested approximately €800 million in the region since our first transaction in 2001. We look forward to developing a long-term partnership with Coop as it seeks to continue expanding its market share across Denmark."

Flemming Møller Hansen, Head of Real Estate, Coop Danmark, said:

“We are excited to gain a long- term partner that believes in Coop’s take on the future of European retail and our new discount store chain, Coop365. This current sale-leaseback is a natural way for us to adjust a portion of our portfolio as we continue our expansion across Denmark with several new properties for discount stores in our pipeline.”

Helle Nielsen Ziersen, Head of EDC International Poul Erik Bech, advisor to W. P. Carey, said:

“Once more, it has been a pleasure to advise and assist W. P. Carey who is one of the largest net lease REITs. We already have in-depth knowledge about Coop from prior assignments, where our collaboration has been successful and mutually fruitful. This, coupled with our previous experience with W. P. Carey, resulted in a process driven efficiently with much professionalism seen from all parties. This transaction marks the beginning of a long-term partnership, and we are looking forward to being a part of the great relationship that has been established with both W. P. Carey and Coop.”