Â鶹ӳ»­

European retail property specialist Corio has acquired Le Vele shopping gallery and Millennium Entertainment centre in Cagliari on Sardinia for EUR 103.3 mln. The investment volume reflects a net yield of 7%.

The acquisition is Corio's second in Italy in a matter of days. During the MIPIM real estate fair in Cannes last week, PropertyEU reported that a joint venture of Corio and Allianz had signed a preliminary agreement to acquire the Porta di Roma shopping centre in the Italian capital. That deal was valued at about EUR 400 mln, according to sources. Corio declined to comment on the report.

Corio said the Le Vele shopping centre comprises 44,400 m² Gross Leasable Area (GLA), of which the company 31,900 m². The remainder is owned by Carrefour.

The acquisition will contribute to Corio's direct result as of 19 March 2010. The acquisition of Le Vele fits in with Corio's strategy of focusing on shopping centre dominance in the catchment area, good visibility and accessibility from surrounding principal routes and steady financial performance, Corio said.

The shopping centre comprises two separate buildings on one site. The complex is anchored by Carrefour and offers 80 different brands. Le Vele's tenant mix comprises shops (10,300 m2), medium sized units (2,300 m2), large sized units (5,200 m2), bars and restaurants (2,400 m2), multiplex cinemas (8,700 m2) and leisure (3,000 m2). The centre has a 1% (of total theoretical rent) vacancy rate. Corio expects that with its hand-on management it can improve the long-term profitability of the centre.

Le Vele shopping gallery opened in Cagliari in 1998 and the Millennium Entertainment centre opened in 2001.