German group Union Investment Real Estate is understood to have received offers well below expectations for its Auchan Monza Shopping Centre in Italy, PropertyEU has learned.
Union, which put the asset up for sale in March through CBRE, was hoping for offers just below €100 mln while bids have come in at much lower levels, reflecting a cap rate of nearly 10%, or around €80 mln, according to well-informed market sources.
If it goes ahead with the sale, the Hamburg-based investment manager will make a heavy loss on its investment, having spent just over €142 mln to buy the asset in 2009.
Union declined to comment.
The 28,000 m2 scheme is located in Monza, the town famous for hosting the Formula 1 Italian Grand Prix, 15 km north-east of Milan. Auchan Monza has 70 shops and is anchored by a 77,000 m2 Auchan hypermarket. The scheme opened in 2008 and also includes a hotel and office space.