German insurance group Allianz is the frontrunner to acquire a 49% interest in an Italian retail joint venture currently held by US-based retail specialist Simon Property Group, reliable sources have told PropertyEU.

German insurance group Allianz is the frontrunner to acquire a 49% interest in an Italian retail joint venture currently held by US-based retail specialist Simon Property Group, reliable sources have told PropertyEU.

Known as Gallerie Commerciali Italia (GCI), the joint venture owns and manages 47 shopping centres in Italy. Italian insurer Generali and private equity group Carlyle are also believed to have made an offer for the company.

According to sources, the Simon Property Group stake could fetch as much as EUR 500 mln, valuing the company at roughly EUR 1 bn. A spokesperson for Allianz Real Estate declined to comment on Thursday.

GCI is a 51/49 joint venture between French hypermarket group Auchan and US retail specialist Simon Property Group. The joint venture owns a portfolio of over 40 shopping centres with some 500,000 m2 of gross lettable space. Credit Suisse is advising Simon Property on the sale process, which is close to exclusivity.

The divestment is part of Simon Property's strategy to sell off non-strategic assets in a number of European countries. Earlier this year, the company divested its stake in Simon Ivanhoe, a partnership with Canadian group Ivanhoe Cambridge, to Unibail-Rodamco. Simon Ivanhoe held a portfolio of seven shopping centres in France and Poland.

Auchan, which holds its majority stake in GCI through its Immochan unit, has the pre-emptive right to buy out Simon Property Group, but has not yet shown any intent to exercise it.

In an interview with PropertyEU during Expo Real in early October, Allianz' CEO Oliver Piano said the group is keen to expand in the retail property market.