AXA IM – Real Assets has completed the acquisition of a prime retail asset in the centre of Venice, Italy from a private investor for €45.75m.
Serving as Zara’s flagship outlet in Venice, the high street property totals 2,660 m² arranged over five floors, making it one of the largest retail stores in the city. The asset was launched in its current form in October 2017 following a comprehensive redevelopment from office use to deliver a modern and high-specification retail offering which was pre-let to leading international fashion brand Zara, part of the Inditex Group, who is committed to a long-term lease.
The property is located on Calle Zorzi, just a few meters from the Piazza San Marco district in the epicentre of Venice and home to its most famous landmarks. As one of the most visited cities in the world, Venice has a significant retail offering to complement its historical tourist attractions, with luxury operators prominently represented in the San Marco high street cluster. The city is well connected by car, train, boat and an international airport, facilitating the constant inflow of visitors.
Alessio Lucentini, Local Head of Asset Management & Transactions, Italy, at AXA IM – Real Assets, commented: “This acquisition represents an excellent addition to our portfolio, providing us with exposure to the retail market of one of Italy’s most dynamic and frequented cities, Venice. This asset makes a significant real estate investment on account of its unrivalled location, prime quality and the strong covenant of its tenant, Zara. More broadly, we remain confident in the ability of the retail sector to provide secure, long-term income streams with regards to the best properties in the strongest locations and we continue to harness our local team’s expertise to seek out value enhancing opportunities for the benefit of our clients.”