The US alternative asset manager Fortress Investment Group has struck up a joint venture with a subsidiary of Italian banking giant UniCredit to grow a real estate fund management business in the country.
Fortress is making the move via its Italian affiliate, Torre, according to a statement. Under the terms of the deal, UniCredit’s subsidiary Pioneer Investment Management has agreed to transfer its real estate fund management business to Torre and will retain a 37.5 percent stake in the venture. The remaining 62.5 percent will be owned by Fortezza, a subsidiary of Fortress.
The partners are hoping to amass €5 billion ($7.7 billion) of assets under management. Robert Kauffman, president of Fortress Investment Group, said: “Current market conditions offer interesting opportunities in the real estate sector. The combination of our respective skills can create a leading platform for the real estate fund management business in Italy.” Pioneer will provide distribution of real estate products on an exclusive basis, the parties added.
Pioneer manages both a listed retail closed-ended fund in the form of UniCredito Immobiliare Uno and closed-end real estate funds. The five closed-ended funds are; Pioneer RE Brixia, Pioneer RE Turin, Pioneer RE STAR, Pioneer RE Capital Fund, and Pioneer RE AMG.