AXA Investment Managers – Real Assets (AXA IM – Real Assets) has completed, on behalf of clients, the acquisition of CER-L, a logistics portfolio in Northern Italy for c. €270 million, from the Carlyle European Real Estate platform.
The 13-asset logistics portfolio in Italy comprises 11 standing assets totaling c. 310,000 sqm and two development projects which have delivered a further c. 80,000 sqm and are expected to achieve a LEED Silver certification.
The portfolio is let to a diverse range of domestic and international occupiers spanning the Food & Beverage, Fashion, 3PL and Energy sectors, on a weighted average lease term of seven years.
The portfolio is concentrated in Greater Milan, Padua and Turin, three of Northern Italy’s most established logistics markets. All the properties benefit from excellent arterial connectivity within major national and international transportation hubs which form part of the well-established European logistics corridor.
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This transaction represents the latest addition to AXA IM – Real Assets’ c. €2.2bn European logistics portfolio and grows its exposure in the high-growth Italian market, which is characterised by a significant undersupply of institutional quality logistics space.
“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. 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,” commented Nicola Cardani, Head of Transactions in Italy at AXA IM – Real Assets.