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Warburg-HIH Invest buys two retail assets in Padua; assets acquired by TH Real Estate

Padua

TH Real Estate, on behalf of Warburg-HIH Invest Real Estate GmbH (Warburg-HIH Invest, previously: Warburg - Henderson) has acquired two centrally located mixed-use properties in the northern Italian town of Padua for two individual fund mandates.

The assets were acquired from the Real Estate Services spa Group, for a combined purchase price of c.€40m, representing a gross initial yield of c.6%. TH Real Estate will be responsible for the asset management of both assets.

“The current retail market climate in Italy has created counter-cyclical investment opportunities – most notably in cities with sound fundamentals, such as Padua, Parma, Bologna or Genoa,” said Eitel Coridaß, Managing Director at Warburg-HIH Invest.

Mario Pello, Head of Investment Italy, TH Real Estate, commented: “Both assets represented a great opportunity to acquire excellent buildings that are optimally located within the city, benefitting from Padua’s strong economy and high income households.”

Both properties are located in an optimum position on Padua's main high street pitch in the town centre overlooking Piazzetta Cappellato Pedrocchi and Piazzetta della Garzeria, respectively. The asset on Piazzetta della Garzeria has a lettable area of 1,890 sq m (c.23,000 sq ft) and is let exclusively to Hennes & Mauritz. The property on Piazzetta Cappellato Pedrocchi has a lettable area of 2,887 sq m (c.31,000sq ft). Comprised of one retail unit and two office units, its principle tenant is fashion retailer ZARA.

Located about 30 km west of Venice, Padua is a campus town whose population of 200,000 includes more than 60,000 students. It is also one of the oldest cities in Italy, and one of sound fundamentals: The unemployment rate of 6.4% is one of the lowest anywhere in Italy. The regional population has increased by 11% since 2002, outpacing the demographic growth of major Italian cities such as Milan. At €31,000, the GDP per capita more or less matches the level of the affluent northern Italian city of Bologna (€36,000).

 

This article is intended solely for the use of professionals and is not for general public distribution.

Issued by Henderson Real Estate Asset Management Limited, 201 Bishopsgate, EC2M 3BN. Authorised and regulated by the Financial Conduct Authority. TH Real Estate is a name under which Henderson Real Estate Asset Management Limited provides investment products and services. Past performance is not a guide to future returns. The value of investments and any income will fluctuate (this may be partly be the result of exchange rate fluctuation) and investors may not get back the full amount invested. Where opinions have been expressed, they are based on current market conditions and are subject to change without notice.

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