ITALY - Italian fund manager Fabrica is to create and manage a new €600m real estate fund based on the property assets of Inarcassa, the Italian pension fund for self-employed engineers and architects in Italy.

Inarcassa, which has approximately a quarter of its €1bn assets invested in real estate, will transfer property worth up to €600m to the vehicle over the coming years.

The deal follows a bidding process launched by Inarcassa in mid-2009 for the management of the pension fund's real estate assets, which saw a number of companies compete, including Fimit, BNP Paribas Real Estate Investment Management, Hines Italia and Pirelli Real Estate.

The fund still requires authorisation from the Bank of Italy.