Hines has signed the forward purchase of a new, high-quality 82,300m² logistics scheme in the Bologna region of Italy on behalf of the Hines European Value Fund 2 (HEVF 2), through a newly established Italian real estate investment fund (REIF). Castel San Pietro Logistics (CSP Logistics) will be delivered by the vendor, FAP Investments, a leading Italian logistics developer, and once completed in 2022 will comprise two mid-box units of 37,300 and 45,000m² respectively. The acquisition was agreed off-market between the parties for an undisclosed purchase price.
The scheme is well located in the established logistics hub of Castel San Pietro, Bologna, one of the three primary Italian industrial districts and a nexus for the country’s main transport routes. The site is on the edge of the E45 motorway offering excellent connectivity across northern and central Italy.
Paul White, HEVF 2 fund manager, said: “The growth in e-commerce continues to drive huge demand for well-located logistics, particularly in key European distribution hubs, so this acquisition squarely meets our strategy of increasing the fund’s exposure to the sector. Our platform gives us the scope and capacity to source and execute major investments across all sectors, with a particular focus on logistics and residential in the immediate term. We have a strong conviction for Italy and this region in particular as a primary logistics node. The country’s appetite for e-commerce is accelerating at pace and we anticipate demand for such key distribution facilities significantly outweighing supply providing the strong underlying fundamentals which align with our investment strategy.”
Mario Abbadessa, Senior Managing Director & Country Head of Hines Italy, said: “CSP Logistics presents a compelling off-market opportunity to capitalize on the lack of institutional logistics supply in the Bologna area where available land for development is limited. We look forward to commencing leasing discussions, with the aim to have a fully pre-let scheme by PC in 2022. In Italy, we are aiming to invest one billion euros in both traditional and last-mile logistics over the next two years, with the ongoing digitalization of the market making the sector an increasingly appealing asset class.”
