AEW has acquired an 8,500 sqm last-mile distribution warehouse in northern Italy.
The asset was acquired in an off market transaction on behalf of its open-ended pan-European core fund, EUROCORE fund.
The fund has now invested c.€210 million across five assets within just three months of the first closing period.
The last-mile distribution warehouse is strategically located at the junction of the A4 and BreBeMi motorways with connections to Milan, Turin and Brescia city centre and is fully let to a major global ecommerce business on a 9 year lease. Constructed in 2020, the asset has strong ESG credentials and has received BREEAM Excellent certification.
Eurocore aims to provide stable, long term income returns by investing in a diversified portfolio of core office, logistics and residential assets.
This latest acquisition follows four other investments that are all fully aligned with the Fund’s strategy, meeting the changing demand for real estate brought about by ongoing urbanization, demographic changes and the rise of new technologies. Geographically, the focus is on mature and growing markets in Europe’s major cities.
The current portfolio is broadly diversified by geography and sector and consists of assets that are both resilient and future-proof:
- Logistics, Rotterdam, The Netherlands: grade A logistics project with BREEEAM Very Good certification;
- Logistics, Duisburg, Germany: core logistics development receiving DNGB Gold certification;
- Residential serviced apartments, Vienna, Austria: a newly developed residential property certified ÖGNI Gold, comprising 190 serviced apartments;
- Life Sciences, Copenhagen, Denmark: a state of the art asset located in the leading international life sciences hub Medicon Valley; and
- Last Mile Logistics, Lombardy, Italy: a newly completed last mile logistics asset certified BREEAM Excellent.
Christina Ofschonka, Senior Fund Manager of Eurocore at AEW, commented: “To have deployed this level of Fund equity in such a short period of time since the launch of Eurocore is a real testament to the strength of the AEW platform, and in particular the deal origination capabilities it provides across Europe. We are building a diverse portfolio of high quality, future proof institutional assets that we believe will provide resilient income underpinned by robust fundamentals and with a strong emphasis on ESG matters, both at property and portfolio level.”