W. P. Carey buys two Morrisons supermarkets in €59m deal

Global REIT W. P. Carey has expanded its U.K. holdings with the £51 mln (€59 mln) acquisition of two Morrisons supermarkets and attached petrol stations. 

Morrisons

The properties, located in Loughborough and Ilkeston, are leased to Morrisons, a major U.K. supermarket chain, under triple-net lease agreements, where the tenant is responsible for property taxes, insurance, and maintenance.
Morrisons is a well-known supermarket brand in the U.K., serving approximately 9 million customers weekly across its network of almost 500 stores.
This transaction strengthens W. P. Carey's existing relationship with Morrisons, marking their third acquisition from the supermarket chain, following previous deals in January 2024 (a supermarket and petrol station) and December 2024 (a supermarket and a McDonald's drive-thru).
The supermarkets, with a total retail area of 11,334 m2, are strategically located in densely populated areas. The Loughborough property is situated in a residential neighborhood, while the Ilkeston facility is surrounded by a mix of businesses and residences.
The leases include provisions for built-in rent increases over time, providing W. P. Carey with a predictable income stream.
Christopher Mertlitz, head of European Investments at W. P. Carey, said: “We are pleased to build on our relationship with Morrisons, acquiring another set of high-quality grocery assets. This investment aligns with our core strategy of acquiring essential, well-located real estate backed by market-leading tenants, and it underlines our confidence in the strength and growth potential of the U.K. grocery sector."