Corio has signed the preliminary agreement for the acquisition of the Palazzo del Lavoro project in the city of Turin, Italy from Pentagramma Piemonte S.p.A. The acquisition concerns an existing monumental building and the adjacent land that will be refurbished and redeveloped into a shopping center with a total GLA of 28,000 m². The Palazzo del Lavoro shopping center is expected to open in 2014. The project fits very well with Corio’s strategy and its aim to create Favorite Meeting Places. In addition, it offers an opportunity to redevelop a property that is an urban historic monument in Turin with high visibility and notoriety.
Create a sustainable Favorite Meeting Place
This project will provide Corio the opportunity to create a unique and innovative concept. Managing the development in-house will allow Corio to implement sustainability as a key factor in the building and an extraordinary Favourite Meeting Place. This will contribute to the continuity and growth of the Italian results in terms of quality and performance. Corio Italia will create a shopping environment based on its extensive experience and know how in combination with international concept and design organization led by the CDO.
Palazzo del Lavoro was inaugurated in 1961 as ‘International Italian Exhibition’ on the occasion of the centenary of the Unification of Italy and it has been selected to celebrate the 150th anniversary in 2011. The architectural project by Pierluigi Nervi will be redeveloped into a shopping center of about 28,000 m² GLA with a suitable number of parking spaces. This project will be in line with the modern trend relating to restoring the city as a place of economic and cultural exchanges. The design, retail concept, meeting areas, social and cultural events and entertainment will reinforce each other at this location attracting consumers from a large catchment area, reaching out to approx. 1.2 million people within 20 minutes driving time.
Location and surrounding
Palazzo del Lavoro is located in the south eastern part of Turin, not far from Moncalieri and the entrance from the Turin ring-road into the city. The site is highly visible and accessible with both public and private transport. The surrounding area is mainly residential, part of the 1970s growth of the city that occurred during its shining industrial period. The 2006 Winter Olympic Games main facilities, as well as the Olympic Village and the Olympic Media Centre, have been constructed next to the ‘Palazzo del Lavoro’ and they are converted into 750 apartments and Conference Hall. Being included within the city of Turin, this location is well served by the city public transportation system.
Turin was the first capital of Italy in 1861 and currently is an important industrial district; the provincial contribution to the formation of the national GDP is approximately 4.29%, ranking third nationwide after Rome and Milan. Per capita contribution amounts to € 20,300 per annum. The population of the city is about 908,000 inhabitants while the population of the province is about 2.3 million inhabitants. Since the 1990s Turin has been turned from an industrial capital (a sector which continues to play a fundamental role in the economy) into a pole of innovation and culture, which has resulted in new infrastructures for education, for shared knowledge, for opportunities for young people and for the quality of the environment. Distribution of the GDP of the Province of Turin by sectors is as follows: Services 36%, Trade 31%, Constructions 14%, Industry 12%, and Agriculture 7%.
Current portfolio and pipeline
Corio Italia knows the local market very well due to the fact that it is owner of Shopville Le Gru located in Grugliasco, close to the West of Turin. This is a very successful shopping centre with 78,500 m² GLA that Corio manages in-house. It has won several awards (a.o. ICSC Solal Marketing Award in 2009 and 2006) and is locally very well known as a Favorite Meeting Place, providing a shopping experience in combination with activities and social and cultural events such as Gru radio and Gru Village summer event. The current investments in Italy represent 20% of Corio’s portfolio (as of September 30, 2010) and with this project the planned investments in Italy will represent approx. 31% of Corio’s total pipeline. Up till signing, Palazzo del Lavoro was not part of Corio’s pipeline; as from the end of December it will be included in the variable pipeline since the project is still subject to getting the required licenses. The results of Corio Italia’s centers have proven to be quite resilient during the last years, with continuously increasing retail turnovers and a current occupancy rate of around 98.7%.