Building Group Sells section of Settimo Cielo Retail Park for €77m

Italy’s Building Group has sold a key section of the Settimo Cielo Retail Park to Ares Management Corporation and Eurofund Group for €77 mln.

Settimo Cielo Retail Park

This transaction marks the culmination of a twenty-year endeavour by Building Group, which transformed 380,000 m2 of land into one of Italy's largest retail destinations.

The acquisition was finalised through an Italian real estate fund managed by Kryalos SGR. The deal brings together specialised operator Eurofund with international investment fund Ares, utilising its Ares Real Estate platform.

The sale encompasses lots E-A2, F, and B, including properties developed during the recent expansion phase and the park's established assets. These specific assets were developed between 2018 and 2022 as part of the expansion of a section of the retail park previously valued and sold in 2015 to German investors led by UBS.

The agreed-upon value reflects a competitive yield, consistent with initial yields observed in major Italian retail park transactions, thereby affirming the asset's quality and stability.

Including the earlier sale of the first portion of the retail park, the entire project has generated over €200 mln in total revenue. This includes approximately €150 mln from the sale of both portions and around €60 mln from accumulated rentals.

Beyond owning and managing the asset, Gruppo Building also oversaw the entire design and construction of the park and its subsequent expansions. Over the years, the site has undergone continuous transformation. The project also played a significant role in the redevelopment of Turin's northeast quadrant, enhancing accessibility, services, and the overall appeal of the urban area.

With 80,000 m2 of GLA and 66 brands spanning retail, food and beverage, and leisure, Settimo Cielo is now the second-largest retail park in Italy and a key commercial hub in the Northwest region. The recently sold lots include prime assets such as the complex housing Decathlon and the latest sports and leisure facilities, including Europe's largest Padel Arena.

Luca Boffa, CEO of the Building Group, commented: “The arrival of partners of the calibre of Eurofund and Ares Management confirms the asset's strength and its position among the country's leading retail parks. A new phase of investment and growth is now underway for the Building Group, with an expanding portfolio in the residential, mixed-use, and hotel segments, particularly in Turin, Milan, Forte dei Marmi, the French Riviera, and Liguria.”