Baker McKenzie has advised Intermediate Capital Group on its investment in an Italian grocery real estate portfolio with IGD SIIQ S.p.A. (“IGD”). ICG's Sale & Leaseback Fund ("ICG") has signed an agreement with IGD for investment into a portfolio of "stand alone" hypermarkets and supermarkets for €140 million and the transaction is expected to close by 25th November 2021. 
The portfolio is comprised of 5 hypermarkets (located in Livorno, Schio, Lugo, Pesaro and Senigallia) and 1 supermarket (in Cecina), which are expected to generate net annual rental income of approximately €7.7 million with long-term leases. The properties will be transferred to a closed end real estate investment fund (an Italian REIF), invested in by ICG and IDG and managed by Savills Investment Management SGR S.p.A.. ICG will hold a 60% share of the Italian REIF and IGD will hold the remaining 40%, with the goal being to further enhance the portfolio over the coming years.
Baker McKenzie have been providing multi-jurisdictional tax advice to ICG on the structuring of their investment into the Italian REIF. The Baker McKenzie team has been led by London partner Matt Legg, supported by senior tax advisor Rohit Karamchandani and associate Emily Maguire in London. Luxembourg tax advice has been provided by partner Diogo Duarte de Oliveira and senior associate Lionel Ancion of Baker & McKenzie Luxembourg, and Italian tax advice has been provided by counsel Francesco Florenzano of Baker McKenzie Milan. DLA Piper Italy have also been advising ICG on the transaction. 
Commenting on the transaction, Chad Brown, Investment Director at ICG said "This investment was a key target for ICG's Sale & Leaseback fund as we continue to actively seek opportunities across Europe. This transaction represents an attractive deal for ICG that has involved close collaboration with Baker McKenzie, who continue to act as our trusted advisors and provide commercially minded solutions."

London partner, Matt Legg said "We are delighted to have worked again with ICG on structuring this high profile transaction, which is a continuation of our growing relationship with ICG. Working closely with the teams in our local offices, this deal is also a great example of how Baker McKenzie operates collaboratively across borders to deliver the best results for our clients."
This transaction is the latest example of Baker McKenzie's assistance to ICG on their continued investment across the European real estate sector, and highlights Baker McKenzie's cross-border real estate tax and structuring expertise.
Explore Our Newsroom