The Italian fund management unit of US developer and investment manager Hines has acquired the real estate fund management arm of Prima Sgr as part of its plans to boost assets under management to over EUR 3 bn in the country by the end of the year. The deal is the second high-profile acquisition in Italy's fund management industry after the merger earlier this year between Fimit and First Atlantic Real Estate.

Prima Sgr, which was created in 2009 as a partnership between private equity firm Clessidra and bank Monte Paschi di Siena, will transfer the management of EUR 400 mln in real estate assets to Hines, including the MHREC (Monte Paschi Hines Real Estate Crescita) investment vehicle and the Oro real estate fund. The transaction brings Hines' total assets under management to around EUR 2.5 bn. The company is also studying the launch of new investment vehicles such as the Hines Italia Value added fund.

'The acquisition of the real estate division of Prima sgr strengthens our relationship with the institutional investors of the MHREC fund and our collaboration with Prima Sgr,' said Manfredi Catella, president and Chief Executive of Hines Italia Sgr. To achieve growth in the future, the company said it preferred to grow organically rather than through acquisitions. However, it remains opens to opportunities 'aimed at reaching its target of becoming the leading independent asset manager for institutional investors'.

Hines received the green light from Banca D'Italia for the launch of its fund management business in 2009 and has launched five investment funds since, including three development funds with assets of over EUR 2 bn - Porta Nuova Garibaldi, Varesine and Isola. In December last year Hines won a mandate from the Italian private pension fund for journalists, INPGI, to run a EUR 100 mln investment fund.