Italian asset manager Arsenale Sgr has launched an investment fund with a target investment volume of up to €150 million in Italy's large-scale retail sector.
The investment fund, entitled Arefood has already completed eight acquisitions, including Penny, Pam, and Conad supermarkets in Northern Italy.
Three more deals are planned by the end of the first quarter of 2024.
Arefood is targeting a specific niche within Italy: shopping centres and discount stores in smaller cities, beyond the major metropolitan areas, with retail areas of between 1,500 and 2,000 square metres.
These 'second and third-tier cities' often have a focus on proximity shopping, the group noted.
Low-Risk Investment
"We believe investing in Italian large-scale retail real estate is low-risk due to the strength of the grocery sector," commented Marco Stevanato, chief executive of Arsenale Sgr. "It guarantees safe, inflation-indexed returns with potential upside through portfolio growth. Traditional supermarkets and discount stores offer low volatility, attracting investors seeking stability in these new economic conditions."
According to Stevanato, traditional and discount supermarkets are in high demand from investors because they are less volatile than other real estate sectors.
He pointed out that Arefood aims to deliver higher-than-average semi-annual dividends for investors. Fundraising will continue for the next three years and plans include attracting institutional investors to the fund.
