The Carlyle Group expands into Northern Italy logistics

The Carlyle Group 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 acquisition marks its entry into the Northern Italian logistics market. The entry into the Italian logistics market follows Carlyle’s acquisition of 4.45 million-square-foot of French logistics assets earlier this year.

“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 behavior,” said Anssi Halonen, director, Carlyle Europe real estate.

In aggregate the portfolio is currently more than 90 percent 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.