PineBridge Benson Elliot, the UK-based pan-European real estate fund manager, has acquired a logistics site in Turin, Italy, in 50% joint venture with an institutional partner.
The partners have subscribed to 100% of the units in a newly structured Italian real estate investment fund (ER Logistics Fund 5), managed by Europa Risorse SGR (ER SGR), a Bank of Italy regulated fund manager.
ER Logistics Fund 5 owns a 197,000 m2 site in Torrazza Piemonte, northeast Turin. Acquired off-market from a local construction company, the site represents the first investment in a strategy targeting the development of logistics assets in strategic locations across Northern Italy.
The fund aims to pursue a portfolio aggregation strategy by acquiring existing properties located close to urban centers, major roads and labour, alongside the development of Grade A modern logistics assets on both brownfield and greenfield sites with suitable zoning and planning in place
Torrazza, a currently vacant site in the outskirts of Turin in the Piemonte Region, will be transformed into a 61,000 m2 logistics facility including 2,000 m2 of office space.
The scheme will target BREEAM Excellent certification with operational net zero carbon delivered through the incorporation of photovoltaic solar panels. Flexible design will ensure the facility has broad tenant appeal with the facility able to accommodate a single logistics tenant or multiple tenants.
James Jakeman, senior partner at PineBridge Benson Elliot, said: 'Turin is exceptionally well-located for a logistics facility and offers a strong occupational outlook. We expect to see significant demand for the Grade A logistics space we plan to deliver, driven by e-commerce penetration.
'Italy has a significant supply and demand imbalance, vacancy across the country is incredibly low and there is huge appetite for the supply of high quality and carbon neutral logistics space.'
The strategy seeks to respond to the historic undersupply of modern and established logistics hubs in the region, and to the ongoing acceleration of e-commerce across Italy.
The Italian market has traditionally lagged behind other European markets in terms of e-commerce sales penetration (representing 8% in Italy versus 23% in the UK), and the PineBridge Benson Elliot team believes it is poised to benefit from increasing logistics occupier demand as it catches up with other European markets.
