Hines has agreed to invest in three new industrial and logistics assets in Northern Italy from a leading Italian logistics developer FAP Investments, for €75m. The three sites, located in Tortona, Montichiari and Breschia, will span over 100,000m² of class A space, upon completion in the first half of 2023. Each asset is situated in a key strategic location for Italy’s e-commerce and manufacturing industries with excellent transportation links which is likely to appeal to prime credit tenants.
The Tortona asset will consist of two warehouses, totalling circa 55,000m², the Montichiari site covers an area of over 30,000m², and the Brescia location will become home to two last-mile logistics warehouses, covering a total area of circa 15,000m². Furthermore, each asset will be designed and built according to the highest international standards of sustainability and energy efficiency, inspired by modern ESG criteria, to include the installation of electrical panels, the use of electric vehicle fleets, and energy consumption performance monitoring system, common spaces dedicated to employee wellbeing and the development of green mobility programs.
Paul White, Senior Managing Director and HEVF 2 Fund Manager, at Hines, commented: “We continue to see a very compelling opportunity to accumulate new class A logistics assets and take leasing risk in the Northern Italian market. On the fundamentals side, going into 2020, vacancy rates were already very low and the new supply pipeline very thin. Increasing consumer demand for online goods, and corresponding ramp-up in distribution, has pushed demand on quickly and we see rents following. At the same time, a larger pool of institutional investors are looking for exposure to quality logistics assets, particularly for income at scale. We believe our timing in accumulating a meaningful Northern Italy portfolio can capitalise on these dynamics.”
Mario Abbadessa, Senior Managing Director and Country Head of Hines in Italy, added: “We are proud to confirm the strategic acquisition of three sites in Northern Italy which marks an important step for the ongoing development of our logistics platform across the country. We will continue to strengthen our dedicated logistics team and source local strategic partnerships, such as the one with FAP Investments, to drive forward our growth as we commit to investing capital in the logistics sector.”