Tristan Capital Partners has made a major foray into the Italian market with the acquisition by its EPISO 3 opportunity fund of four shopping centers – two in the northern Piedmont region and one each in Rome and Sicily - for around €122 mln. The vendor was French listed retail developer-investor Altarea.
Cameron Spry, Head of Investments at Tristan Capital, said: “Italy is firmly back on the radar screens of pan-European investors and Tristan has been looking to make our first major move in the market for some time. So when the chance arose in an off-market deal to acquire these good quality shopping centres at attractive yields and with solid cash flows, we seized the opportunity. Another draw for the acquisition was that we were able to secure attractive financing terms for the assets.”
The portfolio of neighbourhood shopping centers is spread across three different Italian regions with a well-balanced distribution of rental income: Due Valli in the town of Pinerolo, 40 km from Turin, and La Cittadella in Casale Monferrato, 80 km from Turin, represent about 48% of the total rental income of the portfolio. The third asset in the portfolio is Cassetta Mattei located in the southwestern suburb of Rome which represents 32% of the income, and the remainder is represented by the asset located in Ragusa, Sicily.
The assets, which are established within their own catchment areas, are all recently constructed and have an overall occupancy of 93%. Pradera will act as the asset manager for the portfolio.
Source: Tristan Capital