Aedes has stepped up its foreign expansion process with the kick-off of two new real estate transactions in markets that show high growth potential in different business segments. Aedes enters Central and Eastern Europe with residential development projects and strengthens its presence in Sweden's retail business segment.
The aim of the company is taking the Co-Investor and Asset Management Company business model it has developed in the last three years in Italy and applying it internationally, through the launch of real estate investment funds and strategic joint ventures.
In particular, the first transaction, which marks the company's entry into Central and Eastern Europe (CEE), entails Aedes Investissement's acquisition of 40% of a newly joint venture with a handful of European institutional investors and high net worth individuals. The joint venture will invest in real estate development projects in Slovenia, Romania, Bulgaria, Serbia and Montenegro.
In the CEE region, the joint venture has already started up with a development project in Bucarest. This project, for which retail sales have already begun, relates to the construction of 550 residential units, for an area of 98,000 m², located in the north-eastern area of the city.
The Group's equity commitment in the JV will amount to approximately €20 million with a ROE above 20%.
The second transaction strengthens Aedes' market share in Sweden. Aedes Luxembourg has acquired in joint venture with the REIT Asset Management Group the 50% of KS Provenience, a newco that holds a portfolio of 38 retail properties in various cities of Sweden. The real estate portfolio, which covers an area of approximately 70,000 m², is mainly leased to leading groups in the retail sector, including AxFood, Ica and Antens. The real estate portfolio is worth approximately €64 million.
The new acquired real estate portfolio joins the one previously bought in Sweden through the Long deal reaching an investment value in the real estate market in Sweden of above €200 million.
These transactions constitute significant steps for Aedes in its foreign investment and service development project, in markets where it will implement an opportunistic strategy, bringing added value in terms of expertise, and thus continuing the foreign expansion process began in 2006.