Singapore’s sovereign wealth fund GIC has confirmed the acquisition of the remaining 50% interest in did not already own in the Roma Est Shopping Centre, as tipped by PropertyEU in June.
Singapore’s sovereign wealth fund GIC has confirmed the acquisition of the remaining 50% interest in did not already own in the Roma Est Shopping Centre, as tipped by PropertyEU in June.
PropertyEU reported before the summer that GIC was in the process of taking full control of Roma Est - one of Italy's largest shopping centres - for a price of around €200 mln, reflecting a yield of roughly 6.5%.
GIC already owns 50% of the scheme near Rome and is exercising a pre-emption right on the other half, which was held by a fund managed by CBRE Global Investors.
'The acquisition demonstrates GIC’s confidence in the long-term prospects for Italy and in the future demand for prime regional centres,' the SWF said in a statement, adding that it sees opportunities to add value to the centre through active asset management including leasing and refurbishment strategies.
Roma Est comprises 102,000 m2 of gross lettable area spread over 208 retail units, a hypermarket, 23 bars and restaurants and a 12-screen cinema.
The mall is arranged over two above-ground levels and has 10 large-area stores of over 1,000 m2 and nine mid-sized units between 500-1,000 m2. It is also served by a three-level car park with 6,750 spaces.
CBRE GI inherited the 50% stake as part of its takeover of ING REIM in 2011 and is believed to have sounded out investors’ interest and pricing levels through a close bidding process before starting negotiations with GIC.
CBRE GI will continue as asset manager for the centre.
ING Real Estate teamed up with GIC in 2008 to buy Roma Est from Italian food-retailing chain Gruppo PAM for €400 mln. The asset was owned by ING Retail Property Partnership Southern Europe (RPPSE).
CBRE GI completed the acquisition of ING REIM in November 2011.