TH Real Estate has acquired two centrally located mixed-use properties in the northern Italian town of Padua for two individual fund mandates.
TH Real Estate has acquired two centrally located mixed-use properties in the northern Italian town of Padua for two individual fund mandates.
The assets were acquired on behalf of Warburg-HIH Invest Real Estate from the Real Estate Services Group for a combined price of €40 mln, representing a gross initial yield of 6%.
TH Real Estate will be responsible for the asset management of both assets.
'The current retail market climate in Italy has created counter-cyclical investment opportunities – most notably in cities with sound fundamentals, such as Padua, Parma, Bologna or Genoa,' said Eitel Coridaß, managing director at Warburg-HIH Invest.
Mario Pello, head of investment for Italy at TH Real Estate, commented: 'Both assets represented a great opportunity to acquire excellent buildings that are optimally located within the city, benefitting from Padua’s strong economy and high income households.'
Both properties are located on Padua's main high street in the town centre. One asset has a lettable area of 1,890 m2 and is let exclusively to Hennes & Mauritz. The other property has a lettable area of 2,887 m2 and its principle tenant is fashion retailer Zara.
Knight Frank advised TH Real Estate on the deal.
