AEW, the global real estate investment manager, 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 pan-European Eurocore strategywhich has now invested c.€210 million across five assets over the past three months.
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.
The Eurocore strategy aims to provide stable, long term income returns by investing in a diversified portfolio of core office, logistics and residential assets. In line with AEW’s corporate strategy, the Eurocore approach has a strong emphasis on ESG and targets investments in certified assets with good energy efficiency levels, as well as creating sustainable environments. This latest acquisition follows four other investments that are all fully aligned with the 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 life sciences asset located in the world leading Medicon Valley; and
- Last Mile Logistics, Lombardy, Italy: a newly completed last mile logistics asset certified BREEAM Excellent.
Christina Ofschonka, Senior Fund Manager at AEW, commented: “To have deployed this level of equity in such a short period of time 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.”
AEW is one of the leading investors in core real estate, with 74% of the €70 billion under management classified as core. In Europe, AEW manages almost €34 billion of assets, with €28 billion in core assets. With over 400 staff based in 12 locations across Europe, AEW is able to leverage its local network to source investment opportunities and implement tailored asset management strategies to enhance operating income, ESG metrics and long term value.For further reading:
Management company of AIF authorized by the CSSF since 9 January 2015
5 Allée Scheffer L. 2520 Luxembourg
Natixis Investment Managers
RCS Paris 453 952 681
Share Capital: €178 251 690
43 avenue Pierre Mendès France
This communication is for information only and is intended for investment service providers or other Professional Clients. The analyses and opinions referenced herein represent the subjective views of the author as referenced unless stated otherwise and are subject to change. There can be no assurance that developments will transpire as may be forecasted in this material.