Global investment giants Sixth Street and Starwood Capital have inked an agreement with Italian retail specialist IGD to purchase the majority stake in a portfolio of 13 retail assets valued at €258 mln.
The portfolio comprises eight hypermarkets (located in Chioggia, Porto d'Ascoli, Rome, Rimini, Conegliano, Ascoli Piceno and two in Bologna), three supermarkets (located in Civita Castellana, Ravenna and Rome) and two shopping centres in Bologna and Chioggia respectively.
According to IGD, the portfolio generates approximately €17 mln annually in net rental revenues.
Claudio Albertini, CEO of IGD, said: 'With this operation we are completing the implementation of the asset disposal strategy defined in the 2022-2024 business plan.
'This sale represents an important milestone as, together with the one completed at the end of 2021, it brings the total resources raised in the last three years to reduce the group's debt to around €270 mln. This enables us to reduce our LTV by around 3.7 percentage points.'
The operation is being carried out through a closed real estate investment fund (REIF under Italian law) called Food Fund, established and managed by Prelios SGR, to which IGD will transfer the properties.
Some 60% of the fund (comprising class A shares with preferred return) will be held by a Luxembourg vehicle, 50% owned by Sixth Street and 50% by Starwood Capital. The remaining 40% (class B shares with subordinated return) will be held by IGD.
Net of the portion reinvested in the fund, IGD will collect approximately €155 mln from the sale of the shares at the time of closing.
IGD will also sign a contract with Prelios SGR in order to continue project, property & facility management activities across the entire portfolio, with the aim of further enhancing it in the coming years and ultimately selling it on the market at the best possible conditions.
