Corio has signed the Preliminary Agreement for the acquisition of the companies that own 50% of the shares in the greater portion of Porta di Roma shopping centre for about 220 million (excluding acquisition cost) at a Net Initial Yield of 6.4%. The project will be 50/50% owned by Allianz and Corio through a joint venture structure.
The total shopping center comprises 97,000 m² GLA and 7,200 parking units, the joint venture will be owner of 73,500 m² GLA, the remainder is owned by Auchan. This acquisition has a steady cash flow and will fit in with Corio's strategy. It is dominant in its catchment area, the site benefits from good visibility and accessibility from the external ring road. IKEA and Leroy Merlin are part of the commercial complex. The acquisition is subject to approval of the EU antitrust authority. It will contribute to Corio's direct result as of 1 May 2010.
Porta di Roma shopping center opened in July 2007 and is the largest shopping center in Italy and one of the most modern in Europe, with a total GLA of 97,000 m²; the joint venture will own 73,500 m² GLA. It has 241 shops, anchored by 23,500 m² GLA hypermarket (Auchan on 2 floors), a 14 screen cinema and 7,200 parking units. The shopping gallery has 2 floors and comprises 7 large area stores and 234 retail units. IKEA and Leroy Merlin are part of the commercial complex, creating squares on different levels, connected by ramps and escalators. Porta di Roma offers a good variety of fashion and daily needs which makes the shopping center attractive for leisure shopping and functional shopping. The financial vacancy at time of acquisition is 3.0%. The shopping center attracted 16.5 million visitors in 2009 which is an increase of 23.3% compared with 2008. The catchment area (within 30 minutes drive) comprises 1.3 million people. The shopping centre is opened 7 days a week. Corio and Allianz will own the shopping centre jointly whereby Corio Italia will be responsible for asset and property management and letting and re-letting.
Porta di Roma is located in the municipality of Rome, approximately 12 kilometers to North East of the city centre. It is strategically linked to the external ring road (Grande Raccordo Anulare) and to the Motorway 'Roma-L'Aquila'. Porta di Roma shopping center is located within a larger commercial development area referred to as Comparto Z11 which contains next to Porta di Roma a Leroy Merlin and an IKEA. The completion of Comparto Z11 is the first phase of a larger urban regeneration project called Intervento Bufalotta which will include residential, hotel, office, leisure, parks and schools. The shopping centre is easily accessible by private and public transport facilities. Lazio is one of the most important regions in Italy accounting for 11% of the GDP, the per-capita income is more than 15% above the national. The economy of Lazio is strongly influenced by Rome.
Source: Corio
