The Carlyle Group Extends European Logistics Platform with Acquisition of 210,000 Sqm of Assets in Northern Italy
Northern Italy - Global alternative investment manager The Carlyle Group (NASDAQ: CG) announces that it has extended its European logistics platform through the acquisition of five logistics assets in Northern Italy, on behalf of investment funds that it advises. The portfolio was purchased in two separate transactions with one asset having been acquired from a European investment fund and the remaining four from Prologis. All of the assets are located within the Northern Italian logistics corridor, which is centred around Milan and spreads between Bologna, Venice and Turin. The entry into the Italian logistics market follows Carlyle’s acquisition of 413,000 sqm of French logistics assets earlier this year.
In aggregate the portfolio is currently more than 90% occupied, with two-thirds of the value concentrated in high-quality buildings in prime logistics hubs near Milan. Carlyle has identified a number of value-enhancing asset management opportunities, including lease-up of the vacant space, refurbishments, lease re-gears and potential new development. This is also the start of an ongoing initiative with sector specialists, Logistics Capital Partners, who will assist across the Italian portfolio as it grows.
Anssi Halonen, Director, Carlyle Europe Real Estate, said: “These acquisitions, which mark our entry into the Northern Italian logistics market, further Carlyle’s strategy of building a portfolio of well-located modern logistics assets within this area. Northern Italy is a an attractive logistics market due to a combination of relative undersupply since the global financial crisis and increasing demand driven by the growth of e-commerce and rapidly evolving consumer behaviour.”
Marc-Antoine Bouyer, Managing Director, Carlyle Europe Real Estate, added: “These investments are the continuation of our Pan-European logistics investment strategy that we have successfully initiated earlier this year. We continue to pursue a number of strategies in the UK and European real estate markets that focus on sectors that are driven by demographic trends as well as structural changes to how consumers and businesses behave and how real estate is owned and used.”
Carlyle was advised by Freshfields Bruckhaus Deringer and PWC for the acquisitions, with CBRE providing strategic and transactional market advice. Logistics Capital Partners will be providing leasing, property and technical management for the assets. The acquisition has been financed through a combination of equity and debt, with Aareal Bank providing a financing facility. Prologis was advised by JLL and DLA Piper.
For further information, please contact:
FTI Consulting – for The Carlyle Group:
+44 (0)20 3727 1000
Richard Sunderland / Richard Gotla/ Eve Kirmatzis
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $174 billion of assets under management across 306 investment vehicles as of September 30, 2017. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,550 people in 31 offices across six continents.
About Carlyle Europe Realty:
Carlyle Europe Realty Fund is a special limited fund formed to invest in a thematic and targeted way in real estate and real estate related assets and companies primarily in the United Kingdom, France and Germany, as well as Belgium, Denmark, Finland, Ireland, Italy, Luxembourg, Norway, Portugal, Spain, Sweden and the Netherlands pursuing an opportunistic investment and management strategy. The CER investment team is led by European real estate veteran Peter Stoll and a senior team that averages over 17 years of European principal investing experience. The CER Team features an on-the-ground presence in key locations in the United Kingdom, France and Germany and a pan-European investment team based in London, as well as benefitting from the global resources of Carlyle.
Prologis, Inc. is the global leader in logistics real estate with a focus on high-barrier, high-growth markets. As of September 30, 2017, the company owned or had investments in, on a wholly owned basis or through co-investment ventures, properties and development projects expected to total approximately 687 million square feet (64 million square meters) in 19 countries. Prologis leases modern distribution facilities to a diverse base of approximately 5,200 customers across two major categories: business-to-business and retail/online fulfillment.