(LONDON) – Hines, the international real estate firm, has signed the forward purchase of a new, high-quality 885,000-square-foot logistics scheme in the Bologna region of Italy on behalf of the Hines European Value Fund 2 (HEVF 2), through a newly established Italian real estate investment fund (REIF).
Castel San Pietro Logistics (CSP Logistics) will be delivered by the vendor, FAP Investments, a leading Italian logistics developer, and once completed in 2022 will comprise two mid-box units of 401,000 and 484,000 square feet respectively. The acquisition was agreed off-market between the parties for an undisclosed purchase price.
The scheme is well located in the established logistics hub of Castel San Pietro, Bologna, one of the three primary Italian industrial districts and a nexus for the country’s main transport routes. The site is on the edge of the E45 motorway offering excellent connectivity across northern and central Italy.
This latest acquisition is the fifth for HEVF 2, bringing the amount of equity allocated by the fund to nearly $474 million. When factoring leverage, HEVF 2 is expected to have total purchasing power approaching $3.6 billion, making it Hines’s largest closed-ended fund in Europe to date.
CSP Logistics represents the first logistics scheme to be acquired by HEVF 2, with a series of further investments in the sector across key pan European hub destinations expected to be completed in 2021. The fund and series have historically been primarily focused on the office sector, with complementary allocations to logistics and residential property, but the emphasis on the latter has increased in line with the structurally improving fundamentals.
Paul White, HEVF 2 fund manager, said: “The growth in e-commerce continues to drive huge demand for well-located logistics, particularly in key European distribution hubs, so this acquisition squarely meets our strategy of increasing the fund’s exposure to the sector. Our platform gives us the scope and capacity to source and execute major investments across all sectors, with a particular focus on logistics and residential in the immediate term. We have a strong conviction for Italy and this region in particular as a primary logistics node. The country’s appetite for e-commerce is accelerating at pace and we anticipate demand for such key distribution facilities significantly outweighing supply providing the strong underlying fundamentals which align with our investment strategy.”
Mario Abbadessa, Senior Managing Director & Country Head of Hines Italy, said: “CSP Logistics presents a compelling off-market opportunity to capitalize on the lack of institutional logistics supply in the Bologna area where available land for development is limited. We look forward to commencing leasing discussions, with the aim to have a fully pre-let scheme by PC in 2022. In Italy, we are aiming to invest 1 billion euros in both traditional and last-mile logistics over the next two years, with the ongoing digitalization of the market making the sector an increasingly appealing asset class.”
Hines was advised by Vitale & Co.
Hines is a privately owned global real estate investment firm founded in 1957 with a presence in 225 cities in 25 countries. Hines has approximately $144.1 billion¹ of assets under management, including $75.5 billion for which Hines serves as investment manager, including non-real estate assets, and $68.6 billion for which Hines provides third-party property-level services. The firm has 165 developments currently underway around the world. Historically, Hines has developed, redeveloped or acquired 1,426 properties, totaling over 472 million square feet. The firm’s current property and asset management portfolio includes 576 properties, representing over 246 million square feet. With extensive experience in investments across the risk spectrum and all property types, and a pioneering commitment to sustainability, Hines is one of the largest and most-respected real estate organizations in the world.
¹AUM includes both the global Hines organization as well as RIA AUM.
Since entering Europe in 1991, Hines has grown its European platform to include offices in 16 cities as well as a presence in 55 cities in 13 countries, with €22.7 billion of assets under management, including €19.8 billion for which Hines serves as an investment manager and €2.9 billion for which Hines provides third-party property-level services, in Austria, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Poland, Spain and the United Kingdom.
Visit www.hines.com for more information.