Schroders set for Italian acquisition spree

UK asset manager Schroders has a EUR 450 mln warchest for potential acquisitions in the Italian commercial property market, Marina Bottero, the group's newly-appointed head of fund management in Italy told PropertyEU in an interview. According to Bottero, Schroders has raised around EUR 180 mln of equity from a range of European institutional investors for its Schroder Italian Property Fund II.

'With leverage, this gives us the possibility to invest up to EUR 450 mln in retail and office assets mostly located in the Northern part of the country,' she said, adding that the acquisitions will be made over an investment period of a maximum of two years. 'We are one of the few funds with equity available at the moment,' Bottero said, adding that Schroders will mainly target mid-sized retail properties, followed by offices and a small amount of logistics assets. 'But obviously the acquisitions will also depend on opportunities available in the market,' she concluded.

The company has just closed the purchase of an office building in Milan's San Donato from an unnamed international seller. The financial details of the transaction will be disclosed in the coming week, but Bottero said the asset is a modern office building fully leased to top tenants. The company is also in negotiations to buy a shopping centre and an office building in Rome and Milan. Bottero: 'We have quite a lot on our plate right now.'

At present, Schroders runs two property funds in Italy with assets under management of EUR 143 mln. Schroders Italian Property Fund I, the owner of just two properties, is currently in liquidation. Separately, Schroders is also understood to be acquiring a shopping centre in Sweden. The company will reveal the full details of the acquisition in the coming week.