Barings Real Estate Advisers, part of Barings LLC, has acquired the 28,000 m² Retail Park, Parco Fiore, located near Conegliano, North West of Treviso in North East Italy from an Italian SGR in an off-market transaction. The investment is being made through European Core Property Fund Italy, an Italian alternative investment fund set up on behalf of clients for this transaction and managed by Kryalos SGR.
The transaction will be completed in two phases. Barings has completed the first phase, of ca. 23,000 m² of space two lots comprising 10 unit, which fully let and operational.
The second phase, which comprises the acquisition of two additional lots comprising ca. 5,000 m² that are under construction, is expected to be closed during 2018 once the units are fully let.
The retail park, which will provide a total of 17 units and 1,400 outdoor car parking spaces, has excellent visibility and access to the SS13 motorway and it is the only modern retail park in the Conegliano area, one of the wealthiest in Italy by GDP. It has an attractive tenant mix and a good balance of retail and leisure occupiers. To date, lettings have been secured with MediaWorld, Decathlon, C&A Roadhouse Grill and Burger King, as well as with prominent national brands, Mega (groceries), Globo, Casa Tua and Center Casa.
Valeria Falcone, Managing Director for Italy at Barings Real Estate Advisers, said:“This transaction presents a rare off-market opportunity to acquire a newly built retail park with strong tenants and further potential for development. Located in a wealthy catchment area Parco Fiore offers rare modern retail spaces and an attractive tenant line-up paying sustainable rents. The mixture of retail, food and beverage will be very attractive and unique in the region. After the acquisition of an office refurbishment in Milan Porta Nuova and a shopping centre in Asti we are very pleased in acquiring another strong retail scheme in Northern Italy as we continue to grow our local presence.”
Gunther Deutsch, Managing Director and Head of Investment Transactions Europe at Barings Real Estate Advisers said: “This is a great investment opportunity that we were able to secure by executing very quickly. We are committed to growing our Italian platform and securing further acquisitions for our clients, targeting Northern Italy and with the core to value-add strategies. Our main focus will be on the office in Milan, retail and logistics across the whole northern Italian region as well as high street retail in its B cities. We are also able to look into forward transactions and forward funding developments.”
Paolo Bottelli, CEO of Kryalos SGR, adds: "This acquisition through the European Core Property Fund Italy confirms the continued appetite of Barings, together with its global investor client base for investment into the Italian real estate market, underpinned by its attractive medium to long-term fundamentals."
