CBRE Nabs Italian Shopping Center for $68M

The acquisition marks the firm's first purchase as part of its European retail strategy.
Mongolfiera Shopping Center
Mongolfiera Shopping Center, Lecce, Italy

Lecce, ItalyCBRE Global Investors, has announced the purchase of Mongolfiera, a shopping center in Lecce, Italy, on behalf of a pan European retail strategy. The property traded for $68.3 million (EUR 61.8 million) and was sold by London-based asset manager Schroders.

The property opened in 1994, and includes a hypermarket and gallery. The shopping center was extended in 2006, and upgrades have been made to include a food court area and more retail space. CBRE purchased 122,331 square feet, which include the hypermarket. The single-floor building is anchored by Ipercoop, which was not included in this transaction, MediaWorld, H&M and Piazza Italia. At the time of the deal, the center was 100 percent occupied by 48 tenants.

“The Italian retail sector is generally performing well on the back of the rebound in consumer confidence. The investment fundamentals for this acquisition are solid and it should be a strong performer,” said Alberico Fossati, transactions manager, Italy, with CBRE Global Investors, in a prepared statement.

“Mongolfiera Lecce has an excellent track record and shown resilience over the years with exceptional tenant sales performance. We have identified a number of asset management opportunities that will generate strong rental growth. With the combination of a stable, attractive income yield and rental growth potential, the asset is an excellent addition to our shopping centre portfolio and our first acquisition for this particular strategy in Italy,” Florencio Beccar, head of EMEA Retail at CBRE Global Investors, said in prepared remarks.

Image courtesy of Centro Monglofiera