Savills Investment Management has launched a €300 mln retail real estate fund in Italy, on behalf of insurance company Gruppo Cattolica Assicurazione and Conad, the largest consortium of independent retailers in the country.
The Mercury fund comprises three sub-funds, all managed by Savills IM, containing the assets of Conad Adriatico, Conad Centronord and Conad del Tirreno. The fund has been structured to allow the cooperatives to sell and lease back assets including supermarkets, hypermarkets and malls across central and northern Italy.
Giuseppe Oriani, managing director of Savills IM, told PropertyEU: 'Working alongside Conad and Gruppo Cattolica Assicurazioni in the construction of the Mercury Fund is a sign of both our achievements and ambitions in Italy, as we move from a traditional specialist role in investing in Italy on behalf of foreign investors, to creating funds for Italian investors investing in Italy.'
The largest investor in the fund vehicle is Gruppo Cattolica Assicurazioni with a 51% holding. The Conad cooperatives are participating with a 49% share.
Conad said the deal would enable it to free up resources to develop its domestic activities and accelerate growth.
According to Savills, the Mercury fund will ensure stable dividend streams while leaving the transferred property available to each of the Conad cooperatives involved, thanks to long-term leases.
Local sources indicated that negotiations for the fund first commenced in 2014.