Global real estate giant, AXA Investment Managers – Real Assets, announced Thursday that it had completed, on behalf of clients, the acquisition of CER-L, a logistics portfolio in Northern Italy for approximately €270m. The portfolio was acquired from Carlyle European Real Estate.
The acquisition furthers AXA’s exposure to sector that proved to be one of the hottest real estate sectors in 2020 with a string of deals announced in recent days and weeks.
The 13-asset portfolio comprises 11 standing assets totalling around 310,000 sqm and two development projects which of approximately 80,000 sqm. The portfolio is let to a range of domestic and international occupiers spanning F&B, fashion, 3PL and energy. The WALE of the portfolio is 7 years.
The portfolio is concentrated in Milan, Padua and Turin, three of Northern Italy’s most established logistics markets.
This is the latest addition to AXA IM – Real Assets’ €2.2bn European logistics portfolio and grows its exposure in the high-growth Italian market, where there is a significant undersupply of institutional quality logistics space.
Nicola Cardani, Head of Transactions in Italy at AXA IM – Real Assets, commented, “This is a rare opportunity to acquire a portfolio of high-quality logistics assets let to strong covenants and achieve immediate scale in a country with a logistics market that, to date, has been underpinned by relatively low e-commerce penetration. The portfolio offers extremely resilient income from day one, with the medium-term opportunity to leverage the mix of vacancy and shorter leases to capture significant reversion.”
Commented on the outlook for logistics in Europe, Mr. Cardani added, “The European logistics sector continues to benefit from the structural shifts driven by the rapid growth of e-commerce, which has accelerated in recent months, as well as evolving changes to supply chains and our pan-European logistics platform is ideally positioned to take advantage of these trends on behalf of our clients.”