Italian asset manager Pillarstone has announced the launch of a retail and leisure fund focused on the conversion of largely industrial assets to retail and tourism use.
Pillarstone, which was founded in 2015 with support from KKR, said that the fund is being seeded with an initial portfolio of 10 assets located throughout Italy, for a value over €250 mln and total m2 of 200,000 m2.
The fund is teaming up with Promos, an Italian shopping centre developer, on the redevelopment projects.
Gaudenzio Bonaldo Gregori, country manager of Pillarstone commented: 'With the Retail & Leisure fund we are entering a new asset class which presents significant opportunities also in light of the changes taking place in retail and tourism in Italy.'
He added: 'We aim to double the assets under management in the next 12 months, applying our distinctive skills in relaunching and creating value for all stakeholders involved.'
'This operation represents a real innovation in the Italian commercial real estate sector. Unique to date, the fund aims to be an opportunity for the industry to restore value to assets that are no longer performing through reconversion, relaunch and repositioning operations,' said Filippo Maffioli, CEO of Promos. 'This is a challenge in which we believe a lot and in which we are investing significantly as we believe it could become an opportunity for the Italian market and a new development driver for our group. The project, which currently includes 10 shopping centers, will soon be able to grow.'
