Italian real estate management firm Antirion has launched a fund targeting luxury properties in Sardinia. According to marketing documents from the firm, the Sardegna Real Estate Investment Fund is a €100 million value-added vehicle focusing on the development of second homes, villas and hospitality properties on the Italian island.
“In looking for new real estate markets in Italy, we believe that there's a strong opportunity in Sardinia,” said Antirion chief executive Antonio Chiarello. Indeed, the marketing documents allude to “a favourable and unique combination of circumstances to realise a long-term strategy and to become a seasonal residence for Italians and international visitors.”
According to Giovanni Smaldone, head of fund management at Antirion, the Sardegna Real Estate Investment Fund is a contribution fund. “Contribution funds are the norm here,” he said. “We're seeing a lot of interest from [local] owners bringing their portfolios to the fund. And once the fund is up and running, we'll have a lot more initiatives coming to us.”
The fund is working on a two-phase strategy, whereby it will gain control of land and other assets through contribution instead of acquisition during the first phase. The equity raised will be used for construction activity only. Once operative, the goal during the second phase will be to attract the interest of local operators and developers and result in a stronger negotiation position.
Antirion will contribute €120 million during the first phase on top of the €100 million it is seeking from investors. The fund is seeking minimum commitments of €500,000 and is targeting an IRR in excess of 15 percent over a 10-year horizon.
“Italy has seen a lot of international capital over the last few months, mainly for commercial properties in Rome and Milan,” said Smaldone. “But yields are low and there aren't many properties left in those markets. Sooner or later, international investors will have to look elsewhere, and this could be very appealing to them.”