AB European Real Estate Fund enters the Italian market

As part of its diversification strategy, AB European Real Estate Fund has proudly completed its first acquisition in Italy, with the purchase of a logistics asset located in Northern Italy.

Built in 2002, the property comprises a distribution warehouse as well as an office building for a total area of ca 26’000 sqm. This transaction represents a sales & leaseback with Staples Italy. The proposed investment has been completed at full equity at closing, while refinancing is expected to happen later in 2018 together with other potential new acquisitions in Italy.

Recently, the Italian north-west area has been bolstered by the development of a 100’000 sqm highly specified fulfillment centre in Vercelli (30km from the subject asset) which has been pre-let to Amazon and opened in Q3 2017. The scheme is testament to the attraction of the immediate vicinity for logistics and the importance of the A4 motorway.

Daniel Deléchat, heading the Real Estate Team at Arab Bank (Switzerland) Ltd., concludes: “This transaction represents the first step into the Italian Real Estate market at an attractive yield and with a long lease duration, in line with the pan-European Fund’s strategy. The team is also working on other live transactions to fuel the future pipeline.”

In this transaction, the Fund was advised by Savills Investment Management and DLA Piper on Legal and Tax due diligence. Savills Investment Management will be responsible for the asset management of this property.