BNP Paribas REIM SGR p.A. and Gallerie Commerciali Italia Spa (GCI), a company of the Auchan group, have sealed an agreement to set up the 'Prime Shopping Value' closed-end real estate fund under Italian law.
GCI will contribute 15 retail properties (13 shopping centers and two retail parks) to the fund, distributed throughout Italy and characterized by rent contracts with high-standing operators and retail chains. The operation, worth about 700 million, will be concluded once the Fund's shares have been allocated to institutional investors.
The target yield of the Fund, for which the Auchan Group has shown an interest in holding a stake, is declared to be over 8%.
"This operation is further proof of our interest in the retail sector which already represents 33% of our assets under management, worth €1.5 billion, demonstrating once again that it has, over the last few years, attracted the attention of several national and international investors," commented Cesare Ferrero, BNP Paribas Real Estate Country Manager for Italy, and Ivano Ilardo, BNP Paribas REIM SGR p.A. Managing Director.
"We're very happy to have a partner like BNP Paribas Reim SGR in this project," explained Edoardo Favro, Managing Director of Gallerie Commerciali Italia Spa (GCI). "These are very difficult times for Italy and for our sector, and we are aware of what it means to launch a project in this historic phase.
"We are also convinced that investors will appreciate the quality of the proposed package and the soundness of the parties involved. For GCI and the Auchan Group, this will also be an opportunity to finance a major future development planned in Italy."
Source: BNP Paribas