Allianz Real Estate has acquired a portfolio of three new, grade A logistics assets in Lombardy in an off-market transaction for €110 million.
The acquisition has been completed through its Italian logistics fund, Investitori Logistic Fund (ILF) which is managed by Investitori SGR, an Allianz Company.
The acquisition is Allianz Real Estate’s fourth secured logistics deal in Italy in the past 18 months and will result in a total Italian logistics portfolio of €275 million in assets under management.
Logistics assets will be 100% income-producing
The logistics assets will be 100% income-producing upon acquisition. Each of the logistics assets is close to Milan and within the wider northern Italy logistic hub: Binasco (29,440 square meters) is close to Milan itself; Massalengo (55,000 square meters) sits between Milan and Piacenza adjacent to the A1, the main Italian motorway; and Ospitaletto (also 55,000 square meters) is in the ‘Golden Triangle’ zone, the wealthiest area of Italy.
Italy remains a core growth market for Allianz Real Estate. The firm plans to continue to grow its Italian portfolio in equity investments over the next three years. The focus will be on prime assets offering long-term value, particularly through offices in Milan and Rome as well as out-of-town logistics assets.
This latest acquisition is the third equity deal in Italy for Allianz Real Estate in the past two months. At the end of May, the firm acquired a prime office building in the central business district (CBD) of Milan for €140 million in a sale-and-leaseback deal with Crédit Agricole Italia. In June, it acquired a LEED platinum office asset in the CBD of Rome for around €200 million from Omega Fund, a closed-end real estate fund managed by DeA Capital Real Estate SGR.
Donato Saponara, Head of Transactions for West Europe & Country Head of Italy, Allianz Real Estate, says, “We take a very positive view of the long-term strength of the logistics sector, with the Lombardy hub benefitting from compelling market fundamentals such as the continued regional growth of online shopping. This latest deal represents an excellent opportunity to purchase a grade A portfolio, well located at an attractive yield and capital value. Logistics as an asset class remains a key focus for Allianz Real Estate, having grown our global exposure in the sector to more than €7.5billion AUM (assets under management).”
Alexander Gebauer, CEO for West Europe, Allianz Real Estate, says, “We will continue to evaluate opportunities in different asset classes as diversification continues to play a fundamental role in our investment strategy. Looking forward, the logistics sector will very likely play a central role as we further expand in the Italian market, which continues to offer high-quality, prime assets on a select basis.”
€200m for Dutch retail purchases
Dutch pension fund PME has given a mandate to CBRE Global Investors to build a €200million convenience retail portfolio in the Netherlands.
The first investments have been successfully completed with the acquisitions of an Albert Heijn convenience store in The Hague and the Helperplein shopping centre in Groningen.
The investment strategy will focus on prime supermarkets and local shopping centres in urban areas. In addition, the mandate has a strong focus on sustainability and a wide investment horizon. The assets are selected by CBRE Global Investors, based on a series of criteria developed in-house.
The Albert Heijn supermarket in The Hague is centrally located on the intersection of Theresiastraat and Laan van Nieuw Oost-Indië, a busy street in the Bezuidenhout district. The store, with a surface area of around 1,285 square meters has recently been refurbished.
The Helperplein shopping centre is in the southern part of Groningen. The 5,000 square meter shopping centre on the main street in the Helpman district has a good mix of convenience retail. The full-service 2,450 square meter Albert Heijn supermarket is an anchor tenant. Other tenants include drugstore Etos, Gall&Gall, Bruna, cheese store Van der Ley and bakery Meijer. Helperplein has essential services nearby, such as a car park and a health centre.
Long-term investment opportunities
Martijn Vlasveld, Portfolio Manager at CBRE Global Investors, says, “The essential places communities rely on for their daily needs also offer great long-term investment opportunities for pension funds. By focusing our strategy on the top 25% of supermarkets and shopping centres, we are focusing on assets that are inherently less sensitive to global events and e-commerce. These locations are used as local meeting places, the importance of which has become even more apparent during the COVID-19 pandemic. These assets also all meet the stringent sustainability criteria that form a key part of our investment mandate with PME.”
Marcel Andringa, of PME, says, “With this mandate, we contribute directly to sustainable shopping facilities in busy areas. At the same time, this convenience mandate acts as a counterpart to our high street retail portfolio and ensures stable cash flow regardless of the economic environment. A fitting complement to our investment portfolio.”
CBRE Global Investors was advised commercially by Kokelenberg & Ouwehand Vastgoed Adviseurs and legally by Houthoff. Bouwfonds Investment Management worked on behalf of the seller Vastgoed Zèta (Platinum-Oost) B.V. and was advised commercially by Vastgoed Centraal and legally by De Brauw Blackstone Westbroek.
Stockholm mixed-use project is a first
Swiss investment foundation AFIAA has purchased a mixed-use property in Stockholm. It is its first investment in the Swedish real estate market.
Situated in a prestigious location in the centre of Stockholm, the historical building is predominantly used for offices.
The building is currently fully let to a solid single-tenant. AFIAA has acquired the property for the portfolio of the AFIAA Global investment group, which focuses on Europe, North America and Australia.
Sebastian Feix, AFIAA’s Head of Transactions International, says, “Thanks to its stability and positive growth prospects, Sweden in general, and Stockholm in particular, is one of the most attractive real estate markets in Europe. Given that the Swedish property market is largely controlled by local investors, we are delighted having entered the market successfully and we are keen to analyse future opportunities and make further purchases.”
AFIAA’s consultants for the transaction were Colliers International. On the legal side, the foundation was advised by Linklaters.
AFIAA is a centre of competence for international real estate investments offering products to Swiss pension funds. Established in 2004, AFIAA Foundation has its head office in Zurich, as well as subsidiaries in New York and Sydney.
It has assets of CHF 3.4 billion under management as of 31 March 2020). For the AFIAA Global product, it acquires office and retail property with an investment volume of CHF 50 to 150 million.
Investment activity is focused on Core and Core Plus category properties in central locations of major cities in Europe, North America and Australia. Its foundation assets are managed by AFIAA Real Estate Investment.
The image is taken by 2Benny on Flickr and is reproduced under CreativeCommons.