Orion buys 50% of Foruminvest's Mongolfiera mall

Foruminvest has sold a 50% stake in its Mongolfiera Molfetta shopping centre near Bari, southern Italy to a vehicle managed by Orion Capital Managers. The companies agreed not to disclose financial details, but the transaction price is believed to be in the vicinity of EUR 60 mln. The total scheme is said to be worth around EUR 140 mln.

The acquisition was made on behalf of OIRP Investments 2, a subsidiary of Orion Income Return Partners, a pan-European core fund sponsored by Orion Capital Managers.

Foruminvest and Orion have been in negotiations since last summer on the centre which opened fully let in March 2008. Developed by Foruminvest Italia, the scheme consists of 35,000 m² including an IperCoop hypermarket of 10,000 m² and 2,750 parking spaces. In 2010, Mongolfiera Molfetta had six million visitors and its sales turnover has been increasing by 8%-9% annually since opening.

According to David Ermia, president of Foruminvest Italia, the company may divest the remaining 50% to another party. 'Orion was interested in buying just 50% but in the future we will probably sell the other 50% as well,' Ermia told PropertyEU. Foruminvest will continue to manage the shopping centre on behalf of the joint venture.

Ermia said that the business relationship with Orion 'was very good and that the two companies want to continue their relationship on future projects as well'. Law firm Latham & Watkins and JLL acted for Orion while Jones Day advised Foruminvest.

Molfetta is Foruminvest's second shopping centre in Italy after Gran Sasso in Teramo. While the Dutch developer has focused on Southern Italy so far, Ermia said the company is now considering new projects in the northern part of the country to reflect the increased interest on the part of foreign buyers for this area. 'We look for international investors for our projects and their interest is currently more focused on northern Italy,' he said, adding that the company plans to slow down its development activities in the south of the country.

'We are in talks with land owners for acquisitions in the north and we hope to be able to announce something in the next month or two,' he said.

Foruminvest's Italian pipeline includes Le Fragole shopping centre near Naples, currently at a planning stage, and a new centre in Latina, south of Rome.