AXA Investment Managers – Real Assets announces that it has completed, on behalf of clients, the acquisition of a core logistics asset in Greater Milan, Italy for c. €35 million from Lasalle Investment Management, the global real estate investment manager.
The standalone asset comprises c. 46,000 sqm of purpose-built single-storey logistics space, which is spread across two blocks and includes 102 loading bays, office space and a canteen. It is fully let to an institutional grade tenant on a strong covenant, offering long term income visibility, while the high-quality asset offers the flexibility to be multi-tenanted if required. The asset is located in Liscate, approximately 16 km east of Milan’s city centre, and benefits from strong road transport infrastructure within close proximity. Its strategic location sits next to Milan’s East Ring Road and the new “Bre.Be.Mi.” (Brescia-Bergamo-Milan-) motorway, providing easy access to the key cities of Northern Italy.
This transaction represents another addition to AXA IM – Real Assets’ c. €2.2bn European logistics portfolio and grows its exposure to the strategic Italian market, which is characterised by undersupply providing attractive prospects for rental value growth. It comes shortly after the acquisition of a c. 65,000 sqm core logistics portfolio, on behalf of clients, in the Netherlands for c. €72 million.
Nicola Cardani, Head of Transactions in Italy at AXA IM – Real Assets, commented: “This asset is located in a strategic micro-location which will be underpinned by resilient demand for good quality logistics space as the structural shifts driven by the rapid growth of e-commerce continue to accelerate. It also fits well within our strategy of focusing on undersupplied markets and micro locations which present an attractive outlook for rental value growth, and we are confident that it will enable us to generate stable income over the long term on behalf of our clients.”
“This transaction, which was completed during the COVID-19 pandemic at the height of lockdown restrictions, further reinforces our conviction in the resilience of the logistics asset class and the ability of our teams to work in this particular context.”
Source : Company