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Kryalos: the objective is managed assets for 5 billion
03 April, Il Sole 24 Ore
The last operation was concluded a couple of days ago. It was carried out by the real estate fund Pyramid, which acquired the multifunctional space designed by Renzo Piano currently occupied by Barilla Centre in Parma.
This is a further step to reach the target of managed assets for five billion euro in the next 12 months. With this objective in mind, the asset management company guided by Paolo Bottelli is intending to extend its business to core capitals, aiming at returns besides opportunistic investments. Kryalos Sgr started its business investing in Italy on behalf of Blackstone when not many were betting on a recovery of real estate in the country. Today, Kryalos has subscribers such as York and Allianz, Kingstreet and Barings. Obviously, a good part of the capital to invest comes from Blackstone. By the next few months, Kryalos is planning the collection of the first discretionary fund. “This is an important step for our growth” – stresses Bottelli – our objective is to reach an investment capacity of 400 million euro, debts included, thanks to international capitals coming from the United States and the Middle East. We’ll use these capitals to acquire core plus and value-added properties in the main Italian cities”.
On behalf of the American private equity company, Bottelli has just concluded some operations in Rome, riding the trend the capital is currently going through. Among the acquisitions concluded, there are the office buildings in Via Vittorio Veneto 54, in Via Nizza 142 and Via Santa Maria. Always in Rome, Kryalos has acquired on behalf of Kingstreet two buildings located in Via Liguria where the first W Hotel of the Marriott group in Italy will open. “The managed assets are over 4 billion – says Bottelli – thanks to our decision to include also capital core, which we want to increase up to one billion within two years. The other three billion is invested in the value-added and opportunistic segments. Our objective is reach managed assets for 5 billion in the next twelve years”. Today, Kryalos holds 1.5 billion euro between acquisitions and sales, representing 10-15% of the market last year, and working with important companies that have decided to invest in Italian real estate. “We’re the first owners of logistic properties in Italy, with about two million Sq m”, continues Bottelli. These days, logistics seems like a goldmine for real estate, with three-digit growth rates. “We’re also present in the retail segment – he goes on – and we’re the leaders for what concerns outlets. We also have a strong position in the office sector in Milan”. Among the assets, there is the building in Piazza Cordusio and the headquarters of Corriere della Sera, the first purchase made on behalf of Blackstone in Italy.
Always in Milan, Kryalos has recently decided to bet on headquarters. According to the rumours in the sector, the company might be about to buy from Generali a building in Via Gattamelata, not far away from CityLife, for a surface of 30 thousand Sq m, to demolish and rebuild. While in Bicocca, the company will take care of the Pirelli campus with a surface of 5 thousand Sq m. Whereas the residential segment seems to be less interesting due to its smaller dimensions.
Is Milan at risk of a property bubble? “Rents have grown by little compared to other European cities and in comparison with the lowest point they’d reached”, he says. He also invites investors to consider other cities such as Rome, Florence and Turin for what concerns the office segment.
Source: Il Sole 24 Ore
Translator: Cristina Ambrosi