Global private equity firm Carlyle has a EUR 750 mln war chest for its Europe Real Estate Partners III fund, according to Guido Audagna, head of Carlyle Italy. The vehicle, which raised EUR 2.2 bn of equity in 2008, is eyeing two shopping centre acquisitions in the Italian market after an absence of over two years.
Global private equity firm Carlyle has a EUR 750 mln war chest for its Europe Real Estate Partners III fund, according to Guido Audagna, head of Carlyle Italy. The vehicle, which raised EUR 2.2 bn of equity in 2008, is eyeing two shopping centre acquisitions in the Italian market after an absence of over two years.
'The European fund could invest up to 30% of this amount in Italy where we have been waiting on the sidelines for the past two years', Audagna said. 'We are looking to re-position existing shopping centres which have become distressed due to the crisis or new mall openings, with the aim to improve cash-flow and put them back on the market. We are also interested in shopping centre projects, rather than office properties where we believe there is a risk of oversupply,' Audagna said.
The company, which recently received approval from the Bank of Italy for the launch of an SGR fund management unit, expects that a new wave of distressed property will come to the market from the banking and public sectors in the next six to 12 months. In particular, Audagna pointed out that the company will look to participate in the sale process of the EUR 600 mln worth of properties to be divested by the Italian defence ministry.
'We will look at acquiring some of these assets or at potential acquisitions from the state,' he told PropertyEU.
In early June, the ministry announced plans to transfer 15 assets into a new investment fund, in a partnership with the municipality of Rome. The portfolio, covering 83 hectares of land, mostly includes military barracks and warehousing units which were earmarked for sale or repositioning. The institution will look for new investors in the properties, with a view to completing the process in the next 12 months.