Principal Real Estate Europe has acquired a core logistics asset for €26 mln in Milan, Italy, for the Principal European Core Fund.
Located at Via Molina 76, Milan in Italy, Vignate is a newly developed 29,000 m2 logistics asset fully let on a long-term lease to Multilogistics S.P.A., a 3PL company serving the local and international markets.
As part of the Principal European Core Fund’s strategy to become carbon neutral by 2030, Vignate will undergo asset management initiatives aimed at achieving a BREEAM ‘Excellent rating’.
Commenting on the acquisition, Giles Smith, head of fund management for Principal Real Estate Europe, said: ‘Acquired at a low entry price as part of a forward funding agreement, the Vignate asset is a good fit for our European Core Fund investment strategy, with plenty of opportunities to improve the asset’s sustainability characteristics and value through the asset management process.’
He added: ‘We see a lot of potential in the Italian logistics market. The lack of existing logistics assets, combined with rising e-commerce penetration from a low base compared with the rest of Europe and huge levels of logistical port activity, ensures demand for this type of asset is likely to remain strong for the long-term.’
