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Korea’s Midas Asset buys logistics center in Italy for €200 mn

Amazon has leased the facility for 15 years to operate a robotics fulfillment center for Italy’s northeast regions

By Nov 24, 2021 (Gmt+09:00)

The logistics center in Italy purchased by Midas Asset Management
The logistics center in Italy purchased by Midas Asset Management

South Korea’s Midas Asset Management Co. has bought a logistics center leased to Amazon, the world’s top online shopping mall, in Italy where the e-commerce market is rapidly growing.

Midas Asset completed the purchase of the newly built center for 200 million euros ($224.8 million) near Milan, Italy, according to investment banking industry sources on Nov. 24. Midas Asset raised money for the deal through a real estate fund it set up and loans from domestic banks.

Amazon leased the 162,000-square-meter property for 15 years -- the construction of which was completed in August -- to operate a robotics fulfillment center for northeast regions in Italy. The center provides stable earnings since Amazon.com Inc.’s European unit guaranteed the rent.

ITALY E-COMMERCE MARKET GROWS RAPIDLY

The property is located in the Milan area, a logistics gateway to southern Europe and a key economic foothold in Italy. The center is also connected by highway to northern regions in Italy, areas with strong consumption based on their large populations.

In addition, it is the first carbon-neutral logistics facility in Europe and an eco-friendly asset that received Building Research Establishment Environmental Assessment Method (BREEAM) certification with a rating of “Excellent.”

“Italy’s e-commerce penetration rate is among the lowest in Europe despite high internet use, but the e-commerce market is rapidly growing,” said a source at Midas Asset. “Demand for investment in logistics assets and their values in Italy is expected to grow, along with a quantitative rise in the e-commerce market based on the country’s population and purchasing power.”

Midas Asset plans to manage the fund for five years with a target return of mid-7% based on the internal rate of return (IRR).

Write to A-Young Yoon at youngmoney@hankyung.com

Jongwoo Cheon edited this article.

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