Barings Real Estate Advisers, part of global real estate investment manager Barings, has acquired the 28,000 m2 Retail Park Parco Fiore in north east Italy from an Italian SGR.
Financial details were not disclosed.
Located near Conegliano, north west of Treviso in the Triveneto region, the retail park will have a total of 17 units on completion plus 1,400 outdoor car parking spaces. It is the only modern retail park in the Conegliano area, one of the wealthiest in Italy by GDP. To date, lettings have been secured with MediaWorld, Decathlon, C&A Roadhouse Grill and Burger King, as well as with domestic brands including Mega (groceries), Globo, Casa Tua and Center Casa.
'This transaction presents a rare off market opportunity to acquire a newly built retail park with strong tenants and further potential for development,' said Valeria Falcone, managing director for Italy at Barings Real Estate Advisers.
'Located within a wealthy catchment area, Parco Fiore offers rare modern retail spaces and an attractive tenant line-up paying sustainable rents. The mixture of retail, food and beverage will be very attractive and unique in the region.'
The investment is being made through European Core Property Fund Italy, an Italian alternative investment fund set up on behalf of clients for the transaction and managed by Kryalos SGR.
The deal will be completed in two phases. Barings has completed the first phase, of around 23,000 m2 of space in two lots comprising ten units, which are fully let and operational.
The second phase, which comprises the acquisition of two additional lots comprising around 5,000 m2 that are under construction, is expected to be closed during 2018 once the units are fully let.
'We are committed to growing our Italian platform and securing further acquisitions for our clients, targeting Northern Italy and with core to value add strategies,' said Gunther Deutsch, managing director and head of investment transactions Europe at Barings Real Estate Advisers.
'Our main focus will be on office in Milan, retail and logistics across the whole northern Italian region as well as high street retail in its B cities. We are also able to look into forward transactions and forward funding developments.'
'This acquisition through the European Core Property Fund Italy confirms the continued appetite of Barings, together with its global investor client base for investment into the Italian real estate market, underpinned by its attractive medium to long term fundamentals,' said Paolo Bottelli, CEO of Kryalos.
'After the acquisition of an office refurbishment in Milan Porta Nuova and a shopping center in Asti we are very pleased in acquiring another strong retail scheme in Northern Italy, as we continue to grow our local presence,' concluded Falcone.
