W. P. Carey expands UK portfolio with $69M Morrisons acquisition
This is the third transaction between W. P. Carey and Morrisons in the past 18 months.
Global real estate investment trust W. P. Carey has deepened its footprint in the UK grocery sector, acquiring two Morrisons supermarkets and petrol stations in a deal worth £51 million ($69 million).
The properties, located in Loughborough and Ilkeston, are leased to Morrisons on triple-net terms, under which the tenant is responsible for taxes, insurance and maintenance. Together, they comprise more than 11,300 square metres of retail space and are positioned in densely populated areas, Loughborough in a residential neighbourhood and Ilkeston amid a mix of businesses and homes.
The leases include provisions for built-in rent increases, giving W. P. Carey a predictable income stream. Christopher Mertlitz, the company’s head of European investments, described the acquisition as “another set of high-quality grocery assets” that align with W. P. Carey’s focus on “essential, well-located real estate backed by market-leading tenants.”
Strengthening ties with Morrisons
This is the third transaction between W. P. Carey and Morrisons in the past 18 months. In January 2024, the REIT bought a supermarket and petrol station in Doncaster, followed in December by a supermarket and McDonald’s drive-thru in Manchester’s Lime Square Retail Park.
For Morrisons, the UK’s fourth-largest supermarket chain, serving roughly nine million customers weekly across nearly 500 stores, these sale-leaseback deals have provided a way to unlock capital while retaining long-term operational control of strategic sites.
Context: Grocery property market’s appeal
Grocery-anchored assets remain a bright spot in the UK retail property market. The sector’s resilience during economic fluctuations, combined with planning and land constraints that limit new competition, has kept demand high among investors. Net-lease structures, such as those used in W. P. Carey’s acquisitions, are particularly attractive because they offer inflation protection and stable returns.
P. Carey has made similar plays across Europe, including a €87 million deal with Spanish grocer Eroski, reinforcing a strategy centred on acquiring core retail infrastructure in established markets.
With the latest deal, the REIT signals continued confidence in the growth potential of UK grocery retail, and in its ongoing partnership with one of the sector’s best-known names.
