ICG Real Estate has agreed to acquire a €203.5 million portfolio of 24 grocery stores from Lidl in a significant sale-and-leaseback transaction that expands the firm’s long-term, income-generating European real estate holdings. The deal, executed on behalf of the Strategic Real Estate II Fund, marks one of ICG Real Estate’s largest retail-anchored acquisitions to date and deepens its presence in the non-discretionary grocery segment. This category continues to demonstrate strong resilience and stable demand.
The portfolio totals roughly 50,000 square meters and includes 17 assets in the United Kingdom, 4 in Ireland, and 3 in Spain. Each store ranges between approximately 1,780 and 2,325 square meters and is currently in various stages of development. ICG Real Estate has committed to forward purchasing each property upon practical completion, with the first acquisition having closed in October 2025 and the final closing targeted for July 2026.
Once completed, each asset will be let to Lidl on a long-term triple-net lease. The structure enables Lidl to free up capital for continued expansion while providing ICG Real Estate investors with secure rental streams backed by one of the most prominent grocery operators in the world. Lidl reported €88.6 billion in revenue and €5.5 billion in EBITDA for 2024, operating more than 12,000 stores across 30+ countries.
The acquisition reinforces ICG Real Estate’s position as a key player in the European sale-and-leaseback market, where it focuses on mission-critical real estate with predictable, long-duration cash flows. The firm’s proprietary sourcing network continues to make it a preferred counterparty for corporates looking to unlock liquidity through structured real estate transactions.
KEY QUOTES:
“This acquisition aligns perfectly with our investment strategy for SRE II. Through this sale-and-leaseback agreement we have secured a portfolio of brand new, purpose-built and mission-critical properties let on very long-term leases, delivering highly sustainable triple-net income from Lidl, one of the world’s leading grocery brands selling non-discretionary items to consumers. We are excited to be partnering with Lidl on this mutually beneficial transaction, which provides a route for the grocer to recycle capital back into its core business, whilst our investors benefit from secure, highly visible and growing future rental cashflows.”
Krysto Nikolic, Global Head at ICG Real Estate
