VastNed Retail has finalised the divestment of its Italian real estate portfolio. This was achieved through the sale of a shop in Via Torino, Milan, which is leased to fashion house Zara.
The shop measures 1,092 m² and is leased to fashion house Zara for a longer period of time. The property has been purchased on behalf of UK life assurance company, Prudential by Prudential Property Investment Managers, advised by Jones Lang LaSalle. This acquisition fits with their European strategy to build a prime continental portfolio. The sale was concluded at its book value of 16.4 million. Compared to the historical cost price including purchase costs in 1998 of 10.1 million, the total indirect return during the holding period amounted to 62%.
Hans Pars, chief investment officer of VastNed Retail: "This sale is fully in line with our strategy to focus on markets in which we already have a good market position by means of good local management or are able to build one. By reinvesting the released funds we will be able to further improve the risk return profile of our real estate portfolio."