Corio Italia has acquired part two of shopping centre Globo for a total amount of €41.2 million from Mercurio. Globo is a shopping center of approximately 40,000 m² located between the cities of Milan and Bergamo. Globo 2 is one of the extensions of approximately 9,600 m² to Globo 1 which was acquired by Corio in December 2004.
This agreement with Mercurio arises from the contracts between Mercurio and Polis Fondo Immobiliare, the Italian company that sold Globo 1 to Corio. With this investment Corio increases its interest in a shopping center that is dominant in its catchment area; it will contribute to the earnings per share immediately and offers reversionary potential over the next few years.
The shopping center Globo is one of the largest shopping centers in Italy, consisting of approximately 40,000 m² and approximately 130 shops with leading national and international retailers. It is located in the villages of Busnago and Cornate D'Adda between the cities of Milan and Bergamo in the Regione Lombardia, the region with the highest purchasing power in Italy. From the A4 motorway, the motorway between Milan and Bergamo, it has good accessibility via the SP-2.
Globo 1 was built in 1993 and acquired by Corio in December 2004. It consists of a gallery of 9,600 m² with 64 shops and is anchored by an IPER hypermarket of 12,000 m². Globo 2, connected to Globo 1, opened in 2001 and the retail area of 9,600 m² with 34 shops is anchored by a Media World. Following the successful first extension, another extension Globo 3 opened at the end of 2004. Globo 3 is connected to Globo 2 and consists of approximately 8,500 m² retail area anchored by Zara and Upim. The shopping center has 4,500 parking places.
In December 2004 Corio acquired Globo 1 together with call options and pre-emptive rights from Polis Fondo Immobiliare for a total amount of €46.0 million. Pursuant to this agreement Corio has now acquired Globo 2 from Mercurio, the developer of the whole center, for a total amount of €41.2 million. By acquiring Globo 2 Corio has been able to exercise its pre-emptive right on Globo 2 earlier than was foreseen. With this investment Corio increases its interest in a shopping center that is dominant in its catchment area. Globo 2 is fully let. It will contribute to the earnings per share immediately and offers reversionary potential over the next few years.
Corio Italia is active in the optimisation of Globo 1 in terms of lease contracts, merchandising mix and the creation of some additional retail area. In 2005 Corio Italia closed 20 new lease contracts in Globo 1 at a 72% higher rent. Globo 1 currently has approximately 3% strategic vacancy, i.e. area that is deliberately left vacant for the future optimization.
Source: Corio
