Italy’s £500m property deal

A major financial powerhouse has moved into the Italy property market…

Standard Life Investments, one of the largest property investors in Europe, has made its first acquisition in Italy.

Purchased on behalf of its European Property Growth Fund (EPGF), it brings to 12 the number of European countries in which SLI has direct commercial property interests.

The joint venture has been concluded with Panattoni Europe and consists of a 104,000sqm logistics warehouse development at Rolo in Northern Italy, 35km from Modena. The development has a total end value in excess of 567 million.

Strong investment opportunity

Will Fulton, Fund Manager of EPGF, Standard Life Investments, said: “Italy presents us with a strong investment opportunity because it is experiencing a consistent and rising demand for high quality logistics buildings to meet current occupier requirements.

“This particular site is in an excellent location adjacent to the A22 motorway, providing fast access to a number of large Northern Italian cities.

"Panattoni is an experienced developer in this sector with whom we already have a strong relationship, following a number of joint ventures in Poland.”

”EPGF has delivered an annualised total return over the last three years of 18.5%, and since inception in late 2001, the fund has delivered an annualised return of 11.7%”