Investor and asset manager Cromwell Property Group and Korean real estate investment manager IGIS Asset Management have bought seven logistics assets in Italy.
The partnership paid €52.5 mln for the buildings to four private Italian developers.
The buildings are to seed the portfolio of an upcoming fund by Cromwell, focusing upon core-plus logistics assets in the Benelux region, France, Germany and Italy, targeting a gross asset value of €400 mln – €500 mln.
Parcel delivery giant DHL occupies the properties. Cromwell and IGIS were drawn to the deal by the resilience of the logistics segment during economic turbulence caused by the Covid-19 pandemic.
Lorenzo Caroleo, Cromwell’s head of Italy, said: ‘We are delighted with these new acquisitions, which increase Cromwell’s exposure to the logistics sector through seven assets with excellent fundamentals, located in the strongest economic regions of Italy.
‘The urban logistics sector in Italy is characterised by a significant supply/demand imbalance and a supply chain that needs upgrading to keep pace with the needs of modern logistics providers. By acquiring this portfolio, fully let to a multi-national business such as DHL, we are able to tap into this opportunity on behalf of Cromwell and our capital partners globally.’
‘We look forward to deploying further capital in the sector as further opportunities arise, both in Italy and elsewhere in Europe,’ he added.
Sei-hyun Kwon, senior vice president at IGIS, said: ‘This acquisition is an excellent example of the type of logistics assets we are looking to invest in. We have been observing rapid growth of e-commerce and express courier market in Italy for quite some time.
‘Understanding how tough it is nowadays to identify this type of logistics portfolio in strategic locations, we are very fortunate to be able to work with Cromwell who provides us with the sort of on-the-ground asset and investment management expertise that is so important to ensure success as we continue diversifying our exposure to Europe.’
