AXA Investment Managers - Real Assets has completed the acquisition of Porta Siena, a shopping centre in Siena, Italy for €21.5m, on behalf of clients as part of its value-added strategy.
Located in the heart of the Tuscan region of Italy, Porta Siena benefits from strong transport links, including a train and bus station directly outside of the property, and a hill-side escalator connecting it to the city centre. Completed in 2007, the centre is part of a wider complex which includes the International University of Siena, offices and public facilities. The 8,800m2 shopping centre itself is spread across three levels with two further floors designated to parking. Almost fully let to 33 tenants, including a number of strong anchor retailers, the centre attracts an annual footfall of more than 5 million visitors.
Alessio Lucentini, head of asset management & transactions in Italy, Real Assets, commented: “Porta Siena is located in the popular cultural city of Siena, a wealthy and well-connected part of the Tuscan region which appeals to international tourists. Already benefitting from a strong tenant line-up, we have identified further asset management opportunities in order to maximise the centre’s potential. This deal builds on AXA IM - Real Assets’ significant European retail portfolio whilst further increasing our exposure to the Italian real estate market where our dedicated local team continues to source attractive opportunities for the benefit of our clients.”
This transaction demonstrates AXA IM - Real Assets’ conviction in the performance of dominant European retail and leisure centres which are located in strong cities or places of high footfall being tourist destinations in their own right. It follows transactions made on behalf of clients, including a 35% stake purchase in Ruhr Park shopping center in Germany, the establishment of a 50/50 joint venture with Eurocommercial Properties to operate Etrembières shopping centre in France, and the acquisition of a 50% stake in Cabot Circus, Bristol in the UK in partnership with Hammerson. At the end of September 2015, AXA IM - Real Assets held €9.4bn of retail assets across 11 European countries, including over 45 shopping centres.
Investment activity in Italian retail properties remains popular, only behind office in terms of volume. As domestic demand continues to improve, encouraging retailers with expansion plans to pursue their interest in the country, this positive trend is expected to continue and evolve in 2016.
