Hines picks up three sheds in Italy for value fund

International real estate firm Hines has acquired three new industrial and logistics assets in Northern Italy from Italian logistics developer FAP Investments for €75 mln.

The deal was struck on behalf of its Hines European Value Fund 2 (HEVF 2), and continues Hines' existing partnership with FAP Investments, which is also developing an asset near Bologna for the fund.

The three latest acquisitions, located in Tortona, Montichiari and Breschia, will span over 100,000 m2 of class A space upon completion in the first half of 2023. Each asset is situated in a key strategic location for Italy’s e-commerce and manufacturing industries and are yet to be leased.

Paul White, senior managing director and HEVF 2 fund manager at Hines said: 'We continue to see a very compelling opportunity to accumulate new class A logistics assets and take leasing risk in the Northern Italian market.

'On the fundamentals side, going into 2020, vacancy rates were already very low and the new supply pipeline very thin. Increasing consumer demand for online goods, and corresponding ramp-up in distribution, has pushed demand on quickly and we see rents following.

'At the same time, a larger pool of institutional investors are looking for exposure to quality logistics assets, particularly for income at scale. We believe our timing in accumulating a meaningful Northern Italy portfolio can capitalise on these dynamics.'

The Tortona asset will consist of two warehouses, totalling 55,000 m2, the Montichiari site covers an area of over 30,000 m2, and the Brescia location will become home to two last mile logistics warehouses, covering a total area of 15,000 m2.

Inspired by modern ESG criteria, the fit out will include the installation of electrical panels, the use of electric vehicle fleets, an energy consumption performance monitoring system, common spaces dedicated to employee wellbeing and the development of green mobility programmes.

Mario Abbadessa, senior managing director and country head of Hines in Italy, added: 'We are proud to confirm the strategic acquisition of three sites in Northern Italy which marks an important step for the ongoing development of our logistics platform across the country.

'We will continue to strengthen our dedicated logistics team and source local strategic partnerships, such as the one with FAP Investments, to drive forward our growth as we commit to investing capital in the logistics sector.'

In parallel with this investment, HEFV 2 will be over 70% allocated to 10 investments across France, Italy, Germany, UK, the Netherlands and Spain with several other investments also in exclusivity.

Advisors on the transaction included Nctm Studio Legale, EY, YARD REAAS and GVA Redilco.


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