DRC SIM finances Blackbrook purchase of Eroski supermarket portfolio

Cuatrecasas advised DRC Savills Investment Management (DRC SIM) on financing for Blackbrook Capital to acquire a portfolio of 21 Eroski supermarkets under lease. DRC SIM provided the real estate financing required through an innovative structure with a private bond issue subject to English law and a Spanish mortgage guarantee.

Also, a deed of the debtor’s bond issue, including the appointment of a commissioner for the bondholders (without a bondholder syndicate), was granted. The commissioner is registered as the beneficiary (representing the bondholders) of the mortgages listed in the 21 property registers of the supermarket portfolio. Thanks to the unlisted private bonds, this operational structure provides greater flexibility and efficiency in a possible future mortgage loan transfer since the commissioner is always registered as the beneficiary of these mortgages. The transaction amounts to almost €40 million.

The supermarkets are in urban locations with a captive consumer base from local neighborhoods and support both convenience and local e-commerce distribution needs. DRC SIM provided the capital for this facility from its European Real Estate Senior Debt (ERESD) fund series. The ERESD funds provide senior finance (from €15 million to €150 million) across the United Kingdom and Western Europe with up to 65% loan-to-value ratio.

The team advising on the transaction was led by Cuatrecasas lawyers Iñigo de Luisa, Miguel Cruz, Rebeca Rodríguez and Julio Brasa.