LCN Capital Partners has completed the sale of three Konzum stores in Croatia back to the tenant, successfully exiting the investment with returns exceeding those underwritten at initial acquisition.
LCN acquired the three assets in 2016 and 2017 through a sale-leaseback and subsequent build-to-suit to fund the tenant's expansion. Since the acquisition, LCN has actively managed the portfolio to enhance value and performance, including refinancing the assets twice and collaborating with the tenant to extend the leases.
Edward LaPuma, Managing Partner at LCN Capital Partners, said: "Over the years, we've worked closely with Fortenova and have come to value both the strength of the business and the evolving challenges it faces. This transaction demonstrates the foresight of our initial underwriting and the sustained market for mission-critical real estate." He added that as liquidity in local markets has increased and tenant credit has improved over time, their ability to respond to emerging asset management opportunities has been crucial.
Konzum is one of Croatia's grocery retail chains and a core operating business within the Fortenova Group. Serving customers through a nationwide footprint, the company plays an important role in the country's retail and consumer goods ecosystem.
Ward Stocker, Partner at LCN Capital Partners, added: "This realization reflects the dedication of the team from the moment we acquired the assets through to a successful conclusion. We're pleased with the outcome and proud of the work that went into managing the investment through multiple refinancings and lease extensions."
