Kryalos SGR's Canova Fund Acquires 8-Asset Northern Italy Industrial Portfolio, Secures €87M Loan

Kryalos SGR, an Italian asset management company with €14.2 billion in assets under management, has completed the acquisition of an eight-asset logistics portfolio in Northern Italy on behalf of the Canova Fund, the firm announced April 30. The Canova Fund is fully subscribed by a fund managed by Ares Management. The portfolio, sold by Blackstone-sponsored funds also managed by Kryalos SGR, spans more than 150,000 square meters across key logistics hubs in the region.

As part of the acquisition, the Canova Fund secured an €87 million loan from Deutsche Pfandbriefbank to finance the purchase, marking the debut investment for the recently established fund.

Portfolio Overview: Northern Italy Logistics Real Estate

The eight-property portfolio is situated in established logistics hubs across Northern Italy, with each asset offering direct access to major roads and highways. The portfolio features a diversified tenant mix and totals more than 150,000 square meters of warehouse and distribution space. Kryalos SGR will continue to manage the assets in collaboration with the Marq logistics team following the transaction's close.

The properties were previously held by Blackstone-sponsored funds under Kryalos SGR's management.

Canova Fund's Inaugural Investment

The transaction represents the first investment for the Canova Fund, which was established with a focus on income-generating properties characterized by solid operational fundamentals and attractive prospects for appreciation over time.

"This transaction marks the Canova Fund's entry into the Italian logistics sector and confirms the appeal of this asset class to institutional investors," said Gianluca Vairani, Senior Managing Director of Transaction Management and Head of ESG at Kryalos SGR. "The structure of the transaction and the quality of the acquired portfolio reflect a targeted selection process focusing on well-located properties with solid income profiles, within a market context that continues to favour logistics as a core segment for long-term investment strategies."

Financing: €87M from pbb Deutsche Pfandbriefbank

The €87 million loan from pbb Deutsche Pfandbriefbank was secured to finance the purchase of the portfolio. Specific loan terms, including interest rate, loan-to-value ratio, and maturity, were not disclosed.

Kryalos SGR

Kryalos SGR, which the Bank of Italy classifies as "significant in terms of size," employs 130 professionals and offers transaction management, real estate and credit fund management, development, and advisory services. The firm served as manager for both the selling Blackstone-sponsored funds and the acquiring Canova Fund in this transaction.