Castelletto Cervo, Italy – AB Alternative Fund SICAV-SIF (“ABAF”), an open-ended Luxembourg-based investment fund, through its fully owned Italian investment fund managed by Savills Investment Management SGR (“Savills IM”), has collaborated with the tenant Mondoffice, a fully owned subsidiary of Raja Group, European leader in the distribution of packaging, equipment, and office supplies for businesses, to expand their Italian distribution center for Northern Italy, in Castelletto Cervo. The 25’000 sqm extension project will more than double the size of the existing facility to totalise 45’000 sqm, allowing the consolidation of the logistics activities of Mondoffice (first in Italy in the market of office supplies and furniture) and RAJA Italia (number one in packaging solutions). Raja Group is a French international company with EUR 1.7 bn turnover in 2022 and 4.5k employees.
This strategic move will reinforce the company’s commitment to growth, strengthen its position in the Italian market and efficiently expand its storage capacity, while optimising its distribution capabilities.
This project will also have a significant impact on the local economy to the benefit of the Castelletto Cervo local community. The increased warehouse space will indeed require additional staff to manage the expanded operations. Mondoffice remains committed to support the local economy by providing job opportunities and contributing to the overall prosperity of Castelletto Cervo and Biella Province.
The future building is designed according to the LEED (Leadership in Energy and Environmental Design) standard and aspires to LEED Gold certification and energy self-sufficiency. The planned facilities include:
The project also includes the creation of green areas and the improvement of local road accessibility. The construction of the extension shall be completed by Q2 2024.
This extension development, successfully managed by Savills IM, marks a significant milestone for the Italian portfolio and will ultimately add significant value to AB Alternative Fund SICAV SIF European Real Estate sub-fund. Daniel Deléchat, Head of Asset Management at Arab Bank (Switzerland) Ltd., comments: “The concretisation of this important project marks our strong commitment to our tenants and knowhow in the field of asset management and development to deliver the best performance to our investors. The logistics sector remains, and will remain for the years to come, one of the major winners of the real estate industry. We have a strong confidence in our strategic allocation in this asset class due to the long-term structural trends such as e-commerce transition and ESG regulations.”
Savills IM is the investment and development manager of the Italian alternative investment fund which invested in the Castelletto Cervo development scheme on behalf of its sole investor ABAF.
Savills IM commented: “We are very proud of the Mondoffice new warehouse development project which we see as a brilliant example of the fruitful cooperation between the private investment sector and the political authorities, to the benefit of the local communities and of their sustainable economic and social development”.