AEW acquires last-mile distribution warehouse in Italy for EUROCORE fund
AEW, the global real estate investment manager, has acquired an 8,500 sq m last-mile distribution warehouse in northern Italy.
The asset was acquired in an off market transaction on behalf of its open-ended pan-European core fund, EUROCORE (the “Fund”), which has now invested cEUR210 million across five assets within just three months of the first closing period.
The last-mile distribution warehouse is strategically located at the junction of the A4 and BreBeMi motorways with connections to Milan, Turin and Brescia city centre and is fully let to a major global ecommerce business on a nine year lease. Constructed in 2020, the asset has strong ESG credentials and has received BREEAM Excellent certification.
EUROCORE aims to provide stable, long term income returns by investing in a diversified portfolio of core office, logistics and residential assets. In line with AEW’s corporate strategy, the Fund has a strong emphasis on ESG and targets investments in certified assets with good energy efficiency levels, as well as creating sustainable environments. This latest acquisition follows four other investments that are all fully aligned with the Fund’s strategy, meeting the changing demand for real estate brought about by ongoing urbanisation, demographic changes and the rise of new technologies. Geographically, the focus is on mature and growing markets in Europe’s major cities.
Christina Ofschonka, Senior Fund Manager of EUROCORE at AEW, says: “To have deployed this level of Fund equity in such a short period of time since the launch of EUROCORE is a real testament to the strength of the AEW platform, and in particular the deal origination capabilities it provides across Europe. We are building a diverse portfolio of high quality, future proof institutional assets that we believe will provide resilient income underpinned by robust fundamentals and with a strong emphasis on ESG matters, both at property and portfolio level.”
AEW is one of the leading investors in core real estate, with 74 per cent of the EUR70 billion under management classified as core. In Europe, AEW manages almost EUR34 billion of assets, with EUR28 billion in core assets. With over 400 staff based in 12 locations across Europe, AEW is able to leverage its local network to source investment opportunities and implement tailored asset management strategies to enhance operating income, ESG metrics and long term value.