M Core continues its European expansion with entry into Italy

M Core enters the Italian market with a major investment, which has acquired four retail destinations for c. €300 million, representing the first major reinvestment of proceeds from the €2.3 billion sale of M Core's French industrial platform. 

M Core, the privately owned pan-European commercial property investment and asset management group, is continuing its European expansion with entry into Italy, its seventh market, via an investment in a fund. The group invests in retail and multi-let industrial assets throughout Europe, with operations across the United Kingdom, Poland, Romania, Spain, Ireland and Germany, and continues to consider expansion into further countries where the market dynamics are attractive. Following the investment into Italy, the group holds approximately €6 billion of invested assets.

Italy represents an important step in M Core's continued European expansion. This transaction establishes the group's presence in another major European market and reflects M Core’s long-term strategy of investing in well-let retail assets serving established catchments. 

M Core fund has entered Italy in partnership with Reve Asset Management, an established Italian investment and asset management firm, which will provide advice across the portfolio on the ground. 

Grande Cuneo, Grande Sud and Etnapolis are each the dominant retail destination in their catchment. Grande Cuneo, in Piedmont, trades with no direct competition within ten minutes and no new retail pipeline in its area. 

Grande Sud draws on a catchment of almost 1.2 million people in the north of metropolitan Naples, with the only comparable regional scheme sitting outside its primary catchment. Etnapolis is one of the largest shopping centres in the province of Catania, due to become the only mall in the province directly connected to Catania city centre via a dedicated metro station.  

Together, the three schemes provide 300 lettable units across approximately 121,000 sqm of gross lettable area, trade at close to full occupancy, and attract combined footfall of more than 16 million visitors in 2024, with an occupier base that includes Primark, Zara, Decathlon, Leroy Merlin, H&M, JD Sports, MediaWorld and McDonald's. 

Brinpark, a fully let retail park of approximately 17,000 sqm, is the established retail park for the Brindisi area, with a value-led occupier base including Eurospin, MediaWorld, OVS and Cisalfa Sport. 

Three of the assets were acquired from funds managed by Morgan Stanley (Grande Cuneo, Grande Sud and Etnapolis) while Brinpark was acquired from funds managed by H.I.G. Capital. 

The Italian investment represents the first major reinvestment of proceeds following the successful sale of Proudreed, the collective’s French industrial platform, to funds managed by Blackstone for €2.3 billion. The majority of proceeds from that transaction are being reinvested across M Core's UK and European portfolio, supporting continued growth across the group's retail and industrial asset classes.

Sebastian Macdonald-Hall, Chief Investment Officer of M Core, said:

“The proceeds of the French sale are being reinvested purposefully across our UK and European business, and Italy is the first major step in that programme as we continue to grow our collective. M Core’s continued disciplined expansion is based on entering markets where the dynamics support long-term income, and assets are bought well, and managed actively.”

“These Italian retail assets are amongst the strongest retail destinations in their regions, each trading at close to full occupancy with proven footfall and a deep occupier base. The acquisitions reflect our conviction in well-let retail serving established catchments, and our model of holding for the long term. Working with Reve, each scheme will be invested in to grow income, support our occupiers and strengthen the role these centres play in their communities.”

Duccio Frosini, Managing Partner, Reve Asset Management, said:

“This partnership brings together M Core's European investment platform and Reve's knowledge of the Italian retail market. Grande Cuneo, Grande Sud and Etnapolis are dominant schemes with loyal catchments and clear asset management potential, and occupier demand across all assets is strong. We look forward to working to deliver the next phase of growth for each destination.”