Corio and Barletta end shopping centre row

MUNICH - Corio, the Dutch-based listed property company, has reached a final settlement with Italian developer Grupo Barletta to end a long-running row about a shopping centre development project about 20 kilometres from Naples. Corio said it expected the Campania shopping centre in Marcianise will open in March 2007 now that both sides have agreed to end legal action against each other.

Back in April 2003 Corio agreed to acquire the shopping centre, comprising of 52,400 m² lettable space, plus ancillary retail units and 7,000 open-air parking spaces, once Barletta completed it. A Carrefour hypermarket, comprising of 19,3000 m2, is not part of the deal. The total acquisition price for Corio will come to about EUR 200 mln, including financing already advanced by Corio and an amount needed for the completion of the project. Barletta is due to complete the project by December, in time for the planned opening.

The development became a bone of contention in February of this year when Corio accused Barletta of approaching prospective tenants and contacting one potential alternative investor regarding the future acquisition in contravention of the deal with Corio. Corio began legal action against Barletta, and Barletta counter sued.

The details of the settlement which end the legal dispute were not discussed, but Francise Zijlstra, Corio's investment relations manager, confirmed it was 'more or less' what had been agreed in the original deal in 2003. All outstanding issues between the two companies have been settled.

Corio said the Campania Shopping Centre will be the dominant shopping centre in a catchment area with 1.2 million inhabitants. The Dutch company expects to have it fully leased when it opens.