Geneva, the 26th of October 2020
AB Alternative SICAV-SIF European Real Estate Fund, an open-ended Luxembourg based fund that invests in commercial real estate in Western Europe, has recently completed two important initiatives in its Italian based portfolio. Firstly, the lease-up of its asset in Melzo (East of Milan), that was vacant since January 2020 and required substantial refurbishment work, and secondly the acquisition of a 4th asset – a brand new last-mile warehouse in Brescia. These accomplishments will boost the Net Operating Income (NOI) and the overall portfolio valuation.
The logistic warehouse in Melzo is ca. 30,000 sqm and was vacant since the beginning of this year. The asset management team successfully completed the full lease-up in September 2020 to a major German third party logistic operator with a (7+6) firm year lease. The refurbishment is planned for completion by the end of this year, including doubling the number of docking bays to reach a total of 84 bays. The asset will be transformed in the best logistics location of Northern Italy. The works will deliver a modern, efficient and revamped facility to the new tenant, which will start operating in January 2021. The valuation is expected to significantly increase given the new lease of the property and the work that is being undertaken.
On October 22nd 2020 the fund purchased a brand new asset (last-mile facility) in the semi-centre of Brescia, east of Milan, fully let to SDA, a subsidiary of the Italian Post, hence a credit rating equivalent to the Italian state, and under a long term lease (9 years). The asset has been built according to the most modern specifications and accommodates 80 docking bays spread over 5,200 sqm.
Based on these recent achievements, the fund remains on track to deliver substantial returns to its shareholders, with a strong commitment to further increase the size of the Italian portfolio in the logistic sector and add value to the overall portfolio of the fund.