Morgan Stanley Real Estate Investing is on the verge of closing a substantial deal in the Italian market.
Morgan Stanley Real Estate Investing is on the verge of closing a substantial deal in the Italian market.
MSREI is understood to be acquiring a majority stake in a portfolio of 15 retail assets in Italy valued at €700 mln.
The assets are owned by Auchan Group's Gallerie Commerciali Italia, which last year contributed them to a new fund managed by BNP Paribas REIM Italia to attract new investors.
According to well-informed market sources, the package includes 13 commercial galleries and two retail parks held through the Prime Shopping Value closed-end vehicle.
The sale is aimed at allowing GCI and Auchan to finance a large development programme planned in Italy. The group operates 51 Auchan hypermarkets as well as 1,700 supermarkets in Italy.
GCI owns a total of 46 retail centres in Italy, largely anchored by Auchan hypermarkets.
Auchan took full control of Gallerie Commerciali Italia in January last year, after acquiring the remaining 49% stake from US retail REIT Simon Property Group.
Immochan, Auchan's fully owned property arm, took full control of the €1 bn worth of assets, which provide a total of 500,000 m2 gross lettable area distributed over 2,100 stores.
All parties declined to comment.
