Benson Elliot, the UK-based private equity real estate fund manager, has increased the value of its Italian portfolio to €500 mln following the acquisition of a shopping centre in Bologna.
The transaction involved Benson Elliot acquiring all the shares in the special purchase vehicle that owns Centro Commerciale La Meridiana from an open-end global real estate fund managed by TMW Immobilien Weltfonds. The fund is controlled by depository bank, Caceis Bank Deutschland.
The investment volume has not yet been disclosed. But TMW said the asset was sold above the appraised market value of €49 mln in August 2015.
Bologna is the capital of Italy's Emilia-Romagna region, which is one of the wealthiest regions in Europe. Meridiana is a 35,000 m2 shopping centre anchored by an Esselunga hypermarket (which is not included in the transaction), Virgin Active fitness centre, 9-screen UCI Multiplex cinema, OVS and Unieuro. Other high profile tenants include Benetton, Sephora and Sisley.
The centre, one of the largest in the Bologna area, lies five kilometres west of the city centre in an affluent and densely populated area. It comprises 42 units over two levels, with 1,650 parking spaces.
The marketing process began in April 2015 and contact was made with 88 international investors, of which seven serious bids resulted. The asking price for the centre was increased, TMW said, as part of a further round of bidding and a binding purchase agreement with Benson Elliot was agreed in february 2016. The purchase agreement was signed on 14 April 2016.
Italian portfolio
Benson Elliot said that the acquisition of Meridiana marked the latest transaction in a busy period in Italy for the investor, which publicly called the turn of the Italian market in early 2014. Since then, Benson Elliot has acquired six properties across the country's four largest economic regions (Lombardy, Lazio, Veneto and Emilia-Romagna), which collectively generate over half of Italy's GDP.
Benson Elliot's Italian investments to date represent value of over €500 mln, and comprise: the Westin Palace Hotel in Milan; the Westin Europa & Regina Hotel on the Grand Canal in Venice; the Sheraton Hotel in Rome; Monticello, a luxury residential development overlooking the Vatican in Rome; and the Terminal Nord retail park in Udine.
Joseph de Leo, a senior partner at Benson Elliot, said: 'In April 2014 we announced our intention to be an early mover into a recovering Italian market, and we're pleased with the progress we've made since then. Over the past 24 months we've secured a high quality portfolio in the four regions that underpin Italy's investment markets and drive the Italian economy.
'Centro Commerciale Meridiana is the dominant shopping centre in an affluent, but under-served, retail trade area. We've identified a number of initiatives to add value, much as we have at Terminal Nord in Udine, and look forward to working with the centre’s retailers to deliver an enhanced shopping experience for customers and an attractive return for Benson Elliot's investors.'
Europa Risorse, the Italian asset, development and fund management business, assisted Benson Elliot throughout the due diligence and acquisition process for Meridiana.
