UK private investor Topland is close to completing the acquisition of EUR 350 mln worth of retail assets in Spain, according to sources with knowledge of the deal. The transaction, a sale-and-leaseback structure with Eroski, the Basque hypermarket chain, is expected to close in early 2009 and is the second phase of a larger acquisition announced in November 2008. The total portfolio, consisting of 45 hypermarkets and 10 commercial galleries across the country, is being sold on three stages and is expected to fetch over EUR 1 bn.

People familiar with the acquisition process say Topland is looking to create three special purpose vehicles held on a 50/50 basis with Eroski to which it will transfer the portfolio of hypermarkets and commercial galleries. Sources say that the third and final phase involving another EUR 350 mln worth of retail properties, is still pending.

Eroski announced completion of the first phase in November. The deal, brokered by Cushman & Wakefield, involved a portfolio of 12 hypermarkets in Spain for EUR 361 mln.