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Acquisition of the 8Gallery shopping centre in Turin, Italy

Acquisition of the 8Gallery shopping centre in Turin, Italy

Press Release
27 July 2018

AXA Investment Managers - Real Assets grows value-added platform with acquisition of the 8Gallery shopping centre in Turin, Italy for €105 million

- Majority interest joint venture acquisition with retail asset and fund manager Pradera -

AXA Investment Managers - Real Assets (“AXA IM - Real Assets”), a global leader in real asset investments and the leading(1) real estate portfolio and asset manager in Europe, announces that it has completed the acquisition, on behalf of its clients, of a significant majority interest in the 8Gallery shopping centre in Turin, Italy for a total purchase price of €105 million. The acquisition is part of AXA IM - Real Assets’ ongoing value-added investment strategy and is in joint venture with Pradera, a specialist retail asset and fund manager.

Located in the iconic Lingotto Complex, 8Gallery, a top-ranked Turin retail destination, totals 23,300 sqm of GLA over two floors, with 4,000 parking spaces. It is let to a diverse range of national and international brands. Alongside 8Gallery, the Lingotto Complex houses a 2,300-seater cinema, two hotels, a conference centre and a Polytechnic University of Turin campus. The historic mixed-use destination extends to more than 150,000 sqm.

The proposed asset management strategy will seek to capitalise on the centre’s dominant catchment with a number of value-enhancing initiatives. Permissions have been granted for the refurbishment of the northern entrance, with the aim of reinforcing the 8Gallery brand and improving customer flows, as well as a c. 7,700 sqm extension, to deliver additional medium and large sized units, further diversifying the tenant mix and significantly improving the income profile.

The shopping centre benefits from excellent public transport links, with the City Centre less than 15 minutes by metro, as well as its close proximity to Turin’s ring road which provides access to a catchment area of 1.6 million people within a 30-minute drive.

This transaction is part of AXA IM - Real Assets more than €4 billion value-add strategy which seeks to invest primarily in office, retail, logistics and hotel assets in Europe’s key real estate markets, that offer significant value-enhancing asset management opportunities, principally through re-letting, refurbishment and repositioning strategies.

Ian Chappell, Head of Value-Add and Development Funds at AXA IM - Real Assets, commented: “8Gallery fits with our stated value-add strategy of acquiring assets which offer significant capital growth potential and where we can leverage our pan-European local footprint to the benefit of our clients. We are pleased by this acquisition of a landmark urban shopping centre which has excellent real estate fundamentals and strong upside potential through re-positioning and an extension. We will continue to deploy capital in value-added strategies given our increasing investor interest and our focus on sourcing new opportunities in this space.” 

Stefano Viciguerra, Joint Head, Pradera Management Italy added: “We are pleased to be working alongside AXA IM - Real Assets on the asset management and development of 8Gallery. Pradera’s Italian and international retail and leisure teams see huge potential to further enhance the attraction of such an iconic complex for the local customer base and for the increasing number of tourists visiting the city each year.”

- ENDS –

1) Source: INREV/ANREV Fund Manager Survey – May 2018– in terms of assets under management

 

Press Contacts

AXA Investment Managers – Real Assets
Charline Coué, Media Relations Manager
Jocelyne Tamssom, Head of Communications
Tel: +33 1 44 45 97 95
PressOfficeAXAIMRealAssets@axa-im.com

FTI Consulting Inc.
Richard Sunderland, Richard Gotla, Ellie Sweeney, Tom Gough
Tél: +44 20 3727 1000
AXAIMRealAssets@fticonsulting.com

Note to editors

AXA Investment Managers is an active, long-term, global, multi-asset investor. We work with clients today to provide the solutions they need to help build a better tomorrow for their investments, while creating a positive change for the world in which we all live. With approximately €745 billion(1) in assets under management as at end of March 2018, AXA IM employs over 2,390 employees around the world and operates out of 30 offices across 21 countries. AXA IM is part of the AXA Group, a world leader in financial protection and wealth management.

AXA Investment Managers - Real Assets has €76 billion in assets under management, including €58.1 billion in direct property & infrastructure and €14.5 billion in real asset finance as of end of March 2018(2). We offer a 360° approach to investing in real assets, which comprises opportunities in equity or debt, across different geographies and sectors, as well as via private or listed instruments. We are a global leader in real assets investment, the number one property portfolio and asset manager in Europe(3), and one of the largest worldwide. Our teams have been managing funds and mandates for over 30 years and comprise about 650 people in 14 offices that operate in over 20 countries around the world, which provide us with in-depth knowledge of countries, cities and sectors.

AXA Investment Managers is part of the AXA Group, a global leader in financial protection and wealth management.

Visit our websites: www.axa-im.com / https://realassets.axa-im.com

Follow us on Twitter @AXAIM / @AXAIMRealAssets to get our latest information

 

1 Source: AXA IM unaudited data
2 Source: AXA IM - Real Assets’ unaudited data
3 Source: INREV/ANREV Fund Manager Survey – May 2017 in terms of assets under management

 

This document is aimed solely at the media and is for information purposes only. The opinions expressed here are the views of the author and do not constitute investment advice. This is not a recommendation to purchase, sell or subscribe to financial instruments, an offer to sell investment funds or an offer of financial services. This press release is as dated. They do not necessarily represent the views of any company within the AXA Investment Managers Group and may be subject to change without notice. This does not constitute a Financial Promotion as defined by the Financial Conduct Authority. This is for information purposes only. No financial decisions should be made on the basis of the information provided. Past performance is not necessarily representative of future results: performance is not constant over time and the value of investments may fall as well as rise.

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