Barings sells retail park near Treviso, Italy to IMMOFINANZ in cEUR35m deal

Barrin has sold, Parco Fiore Retail Park near Treviso, Italy, through an Italian real estate fund managed by Kryalos SGR, on behalf of a core investment strategy, to Austrian institutional investor IMMOFINANZ.

Built in two phases and delivered in 2017 and 2019, the 27,000 sqm retail park comprises 14 retail and food units, fully let to a high quality tenant mix, including leading international brands such as MediaWorld, and Decathlon, as well as being anchored by the leading Italian grocery retailer Mega.

The asset has been built to a high ESG standard, with a BREEAM Green Building Certification in place, along with photovoltaic panels on the roof. 
 
The asset is prominently located in north east Italy alongside the busy SS 13 Pontebbana linking Treviso and Conegliano to Pordenone and Udine, one of the wealthiest areas in Italy.
 
Marco Corti, Managing Director and Country Head Real Estate Italy, says: “An attractive offer for the acquisition of Parco Fiore convinced us to contemplate the sale in order to realise profits and recycle capital into other opportunities in our investment pipeline. The business plan for the asset has largely been realised, with the asset being delivered to a high standard and fully leased to a number of very strong tenants, which has led to a sustained level of footfall growth since its opening. Despite the recent challenges facing the retail sector due to Covid 19, our expert team has been able to generate good value and deliver attractive returns to our investors over the holding period.”
 
Gunther Deutsch, Managing Director, Head of Real Estate Transactions – Europe at Barings, adds: “This sale is our second realisation in Italy in recent months, following the disposal of the Corso di Porta Vigentina 9 office building in Milan in May. We continue to look for further opportunities to recycle capital into core, core plus and value-add strategies across Europe, with a focus on our strong conviction asset classes: offices, logistics and the “everything with beds” sector, including Build to Rent, student housing and micro/serviced living. This is with a particular focus in the Nordics, the Netherlands, Germany, the UK, Italy, France and Spain.”
 
Paolo Bottelli, CEO – Kryalos SGR, adds: “The Italian real estate market is performing well and continues to attract interest from institutional investors, leading to positive flows of international capital in all asset classes. The sale of the retail park is a great opportunity to capitalise on the operational performance of the asset, and to realise strong returns.”

Dietmar Reindl, COO of IMMOFINANZ, says: "The Italian market is a perfect addition and a further, future growth driver for our successful European STOP SHOP retail platform. With a population of over 60 million, Italy is one of the largest countries in Europe. An extensive market study showed that the available retail structures combined with the purchasing power and consumer behaviour, above all in central and northern Italy, create significant potential for establishing modern retail parks under the STOP SHOP brand. Our plans call for ten locations with an investment volume of up to EUR 250 million by 2024."

This latest acquisition increases IMMOFINANZ's STOP SHOP portfolio to 109 locations (including development projects) in ten countries. The 99 standing investments have roughly 750,000 sqm of rentable space and a carrying amount of approximately EUR 1.1 billion.

Barings and Kryalos SGR were advised by Dentons for legal advice, FIVELEX for tax advice and Agire on the technical side.