The Building Group has finalised the sale of a strategic portion of the Settimo Cielo Retail Park to Ares Management Corporation and Eurofund Group for a total of €77 million, marking the conclusion of a twenty-year journey that has transformed 380,000 square metres of land into one of Italy’s largest retail parks.
The acquisition was completed through a dedicated Italian property fund managed by Kryalos SGR.
The transaction involves the specialist operator Eurofund and the international investment fund Ares, through its Ares Real Estate platform, which manages approximately $109.5 billion in assets under management (AUM), with over 700 professionals across 44 offices in the Americas, Europe and the Asia-Pacific region. .
The transaction concerns lots E-A2, F and B, comprising the properties developed during the recent expansion phase and the project’s historic assets. Specifically, these are assets developed between 2018 and 2022 as part of the expansion of the retail park section built in the first phase, which had already been sold in 2015 to German investors affiliated with UBS (through the Italian vehicle Gres).
The agreed valuation reflects a competitive return, in line with the top yields recorded in major retail park transactions in Italy, confirming the quality and strength of the asset.
Taking into account the sale of the first section of the retail park, the entire project has generated total revenues of over €200 million, comprising proceeds from the sale of the two sections (approximately €150 million) and rental income received over time (approximately €60 million), demonstrating the soundness of the development model adopted and the Building Group’s ability to create value for all stakeholders.
An integrated project for regional development and enhancement
The project marks the completion of a development carried out entirely by the Building Group, which, in addition to owning and managing the asset, was also responsible for the entire design and construction of the Park and its subsequent extensions. The project, in fact, began with the acquisition of a large plot of land, on the initiative of the founder of the Building Group, architect Piero Boffa, to launch a large-scale commercial development project. Over the years, the site has undergone a gradual transformation, supported by significant investment in infrastructure: the special purpose vehicle Settimo Sviluppo has contributed over €25 million towards urban development, new road networks and public works, including the redesign of motorway traffic flows in the area of the A4/A5 junction.
The project has therefore helped to regenerate the north-east district of Turin, improving accessibility, amenities and the appeal of the entire urban area.
One of the largest and most successful retail parks in Italy
With 80,000 square metres of GLA and 66 outlets spanning retail, dining and leisure, Settimo Cielo is now the second-largest retail park in the country and a key commercial hub in the North-West.
The plots sold include prime assets, such as the complex housing Decathlon and the latest sports and leisure facilities, including Europe’s largest padel arena, confirming the park’s position as a cutting-edge destination hub.
A transaction that marks the culmination of the asset’s development
The sale marks the final stage of the Building Group’s value-enhancement strategy, following the 2015 sale to German investors. The involvement of Ares Management, an international institutional investor, and the partnership with Eurofund Group, a specialist operator, ensure continuity in management and operations, with no impact on current tenants or employment levels.
Collaboration with institutional partners of the highest international standing further strengthens the asset’s competitive position and consolidates its growth prospects in the medium to long term.
“This project marks the culmination of a journey begun over twenty years ago by my grandfather and my father, the architect Piero Boffa,” says Luca Boffa, CEO of the Building Group. “Settimo Cielo is one of the most significant development projects in the Italian retail sector, capable of generating value for the local area and establishing itself as a leading shopping destination. The arrival of partners of the calibre of Eurofund and Ares Management confirms the strength of the asset and its position amongst the country’s leading retail parks. A new phase of investment and growth is now beginning for the Building Group, with an expanding portfolio in the residential, mixed-use and hospitality sectors, particularly in Turin, Milan, Forte dei Marmi, the French Riviera and Liguria.”
