Grocery-Anchored Shopping Centers
Food strategy – Food Lion is a necessity retailer with strong store sales.
Strong Anchor Tenant
Food Lion is owned by Delhaize America, the U.S. division of Delhaize Group (NYSE: DEG), which has an S&P rating of BBB-/A3.
Long-Term Anchor Leases
Food Lion, the anchor tenant, recently signed new 10-year leases.
Triple Net Leases
Tenants are responsible for the payment of taxes, insurance, maintenance and repairs, protecting investor distributions from future inflation.
The properties are in growing markets with strong Food Lion brand recognition
High Occupancy Level
Portfolio approximately 98 percent leased upon acquisition.
Renovated Shopping Centers
Seller to complete substantial renovations, all at seller’s cost.
Proposed Merger of Delahaize Group and Royal Ahold, NV
Delhaize Group, which owns Food Lion and Hannaford, and Royal Ahold, NV, which owns Giant, Stop & Shop and Martins, recently announced a merger. The Sponsor believes that the proposed merger would be a positive for the properties by creating a financially stronger anchor-tenant with total sales of more than $60 billion, and a combined enterprise with greater buying power and reduced corporate overhead. Moody’s Investors Services is considering Delhaize Group for a credit rating upgrade as a result of the merger. However, the merger has not been completed and still has to clear regulatory hurdles.