Pirelli RE, Deutsche Bank venture buys in Italy for EUR 305m

Pirelli Real Estate said its joint venture with Deutsche Bank-managed RREEF Global Opportunities Fund II is buying a mixed-use portfolio of 29 properties from Italy's pension fund Enpam. The total acquisition value comes to EUR 305 mln. Closing of the transaction is expected to take place this autumn with the portfolio being transferred to Social & Public Initiatives, an opportunistic real estate fund managed by Pirelli RE Opportunities, the company said in a statement. All the fund's units will be subscribed by the Pirelli RE (35%)- RREEF (65%) joint venture.

The portfolio comprises mostly offices and retail assets, located primarily in northern Italy's Lombardy region, near Milan, and the Tuscany region. The assets provide some 226,000 m² of space, as well as build-on land for another 37,000 m² in the Milan area. Pirelli RE added that 'the assets include certain quality properties located in Milan's downtown area as well as sites located within Greater Milan, offering attractive redevelopment potential.'

The current vacancy rates of the portfolio stands at around 54%. Pirelli RE indicated that its joint venture has already made three acquisitions in Italy and Germany since the start of the year worth over EUR 1.6 bn. Law firms Bonelli Erede Pappalardo and Chiomenti acted as the joint venture's legal advisors, while CB Richard Ellis Professional Services acted as the independent expert. Colliers Elitrade advised Enpam while NCTM acted as legal advisor.