Big three team up in new EUR 250 mln Italian fund

Italy's Gruppo Aedes has joined forces with German real estate company IVG Immobilien and GE Real Estate Italia on Petrarca, a new EUR 250 mln closed-ended real estate fund that will specialise in office properties. The fund is for institutional investors and is managed by Aedes BPM Real Estate.

Aedes said the fund's portfolio consists of 10 office properties with a total surface area of about 83,000 m². Located in major Italian cities, particularly Milan and Rome, the buildings are let to 'top-ranking' companies. The fund's duration is seven years and the target investment level is EUR 375 mln. Aedes said the target for the internal rate of return (IRR) was about 11%.

GE Real Estate Italia will hold a 50% stake in Petrarca for EUR 50 mln as part of a plan of investments to enlarge the company's presence in Italy. Including the subscription to Petrarca, GE Real Estate has an investment portfolio with an overall asset value of about EUR 700 mln.

Aedes will hold 30% of Petrarca, and IVG Italy Office Fund the other 20%. This is the first joint venture for IVG Immobilien's fund segment in Italy. Its Italy Office Fund is tailor-made for institutional investors, Aedes said.

The launch of Petrarca expands Aedes BPM Real Estate's managed portfolio to four real estate funds with an overall asset value of about EUR 657 mln.