An opportunity fund managed by Italy's Castello Sgr has invested nearly EUR 40 mln in the acquisition of several plots of land in Chia, Sardinia. The sites have been sold by Baia Chia Hotels to the Giotto opportunity real estate fund.

An opportunity fund managed by Italy's Castello Sgr has invested nearly EUR 40 mln in the acquisition of several plots of land in Chia, Sardinia. The sites have been sold by Baia Chia Hotels to the Giotto opportunity real estate fund.

Chia is located near Cagliari, the capital of Sardinia.

'For Castello this represents a further investment in the area of Baia di Chia where the company, through its Cosimo I real estate fund specialised in the luxury hotel and tourist sectors, is already present with its Chia Laguna Resort,' the company said in a statement.

The resort offering 452 rooms was acquired in July 2009 for EUR 83 mln, including EUR 45 mln of debt. Castello was advised by law firms Latham & Watkins and Biscozzi Nobili in the transaction, while Dewey & LeBoeuf acted for the sellers.

Founded in July 2007, Castello SGR currently has around EUR 500 mln of assets under management. Earlier this year, the company signed a partnership agreement with Catella Real Estate, which acquired a 10% stake in Castello, and launched the fund-raising of its first European fund, Focus Alpe Adria, which is to be jointly managed with Catella RE.

The company is hoping to raise EUR 200 mln of fresh equity for the vehicle, which will have a spending power of around EUR 400 mln in the Northern Italian, French, Austrian, Swiss and Southern German commercial property markets.

Castello's other shareholders include the Istituto Atesino di Sviluppo with a 35% stake, Mittel with 20% and Fondazione Cassa di Risparmio di Trento e Rovereto with a further 15%.