Principal Asset Management's LOG IN fund has strengthened its foothold in Italy's thriving industrial landscape, completing its fifth acquisition in the country through a carefully orchestrated sale-and-leaseback transaction that underscores the growing appetite for alternative financing solutions among European manufacturers.
The Principal Asset Management deal centres on a 3,774 square metres industrial facility in Fossò, Veneto, leased back to a leading luxury footwear insole manufacturer under a robust 15-year agreement. This marks the second collaboration between LOG IN and the manufacturer, following a 9,200 square metres Tuscany acquisition in Q4 2024, demonstrating the fund's ability to build lasting partnerships with key industrial players.
The property's strategic positioning within Veneto's established industrial corridor, just 16 kilometres from Padua and 30 kilometres from Venice with direct A4 motorway access, exemplifies the type of connectivity-rich assets that institutional investors increasingly prize in today's logistics-driven economy. Recent extensive refurbishments completed in Q2 2025 include sustainability-focused upgrades such as rooftop photovoltaic installations, aligning with ESG mandates that are reshaping industrial real estate valuations.
What makes this transaction particularly compelling for investors is the emerging trend of sale-and-leaseback arrangements becoming a preferred capital optimisation tool for established manufacturers seeking to unlock real estate equity whilst maintaining operational control. This model offers institutional buyers predictable, long-term income streams whilst supporting the reindustrialisation of Europe, a €750 billion opportunity according to recent EU policy frameworks.
Source: europe-re.com on the 2 September 2025
https://europe-re.com/principal-asset-management-secures-italian-footwear-manufacturing-hub-in-strategic-sale-and-leaseback/74466