JV between SFO Capital Partners, Edmond de Rothschild REIM and GARBE Industrial acquires prime logistics site in Greater Milan

London, February 12th, 2025 – A JV between SFO Capital Partners, a London-based real estate investor and investment manager, Edmond de Rothschild REIM, through one of its pan-European funds and GARBE Industrial, has acquired MilEast Logistics Park, a state-of-the-art logistics development in the Greater Milan region. GARBE Industrial Real Estate will act as the development manager and local operating partner.

Aligned with the JV’s investment strategy and leveraging on GARBE Industrial Real Estate’s proven capabilities, the site will be developed, through Eterea Fund managed by Prelios SGR, with a strong emphasis on sustainability, operational efficiency, and tenant requirements. The asset will offer a leasable area of 22,000 sqm with a flexible two-cell layout designed to accommodate single or multi-tenants. Constructed to the highest technical and environmental standards, it will feature 18 loading docks, a 12 m clear height, and 118 parking spaces, all in compliance with rigorous ESG criteria.

The site is in the municipality of Covo, within the Greater Milan Region and one of Italy’s most industrialized areas. This region is distinguished by exceptionally low vacancy rates and consistent rental growth, serving as a key hub for Italy’s leading third-party logistics providers (3PLs) and major retail distributors. The site is strategically located along the A35-BREBEMI highway.

Mohamad Abouchalbak, CEO at SFO Capital Partners, commented: “This project marks SFO Capital Partners’ sixth investment in the logistics sector, reinforcing our strong conviction in the resilience and growth potential of the European logistics market. It further strengthens our presence in key logistics hubs, complementing our growing portfolio in Europe. Moreover, this acquisition represents our second joint venture with Edmond de Rothschild REIM and our third partnership with GARBE Industrial Real Estate, reflecting our commitment to acquiring high-quality assets that meet the evolving needs of tenants while generating attractive, risk-adjusted returns for our investors.”

Pierre Jacquot, CEO of Edmond de Rothschild REIM, stated: “This transaction marks the first investment in Italy for our Smart Estate 2 strategy. It further strengthens the strategy’s allocation to a conviction driven sector, where we continue to identify some interesting risk-adjusted fundamentals. We are very happy to expand our partnership with SFO Capital Partners alongside GARBE Industrial Real Estate and are looking forward to growing the joint venture in Italy and other countries in 2025.”

Dr. Peter Bartholomäus, Head of Fund Management & Capital Markets and Member of the Executive Board at GARBE Industrial, said: “The logistics development in Covo is the third joint project together with SFO Capital Partners and the second joint project in Italy. The project will be another demonstration of our commitment to sustainable and innovative real estate development. The proven collaboration with SFO Capital Partners enables us to build properties that are fit for the future, to set new standards within the logistics sector, and to deliver value both for the occupants and for the investors.”

MilEast Logistics Park is the initial acquisition under SFO LIP I, which includes a curated portfolio of 10 pre-defined logistics assets across Europe, with 40% of the assets already under exclusivity. These assets, strategically located in France, Italy, and the Netherlands, represent over EUR 230 million in gross development costs and are expected to be acquired within the next 12 months.