Barings, one of the world’s largest diversified real estate investment managers, announces the sale of a c. 4,400 sqm office building and associated car parking spaces, at the edge of Porta Nuova, Milan, to Investire SGR. The investment was made through the Italy Opportunity Fund, an Italian alternative investment fund managed by Kryalos SGR, set up on behalf of clients, and for which Barings acts as advisor.
Following the acquisition of the building off market in December 2017, Barings undertook a comprehensive refurbishment of the property, letting the entirety of space to an international audit, accounting and consulting group on a long term lease.
Located on Via Ceresio n.7/9, at the north-west edge of Porta Nuova, the asset is close to the public transport network, including the “Monumentale” metro station; Milano Porta Garibaldi train and metro station; and Milan Central railway station.
Valeria Falcone, Managing Director for Italy at Barings, said, “This investment has been delivered on time, on budget and sold ahead of the initial business plan in less than 24 months, generating significant value for our investors. When we advised the client on this acquisition, we saw an opportunity to reposition the property in a market with very strong fundamentals, taking advantage of the supply and demand imbalance for high quality offices in the area.
“Letting the entirety of the property to a single occupier with an institutional grade covenant was an endorsement of that strategy, and we look forward to exploring similar opportunities in the Milan office market, which remains one of our main targets in Europe.”
Gunther Deutsch, Managing Director and Head of Investment Transactions Europe at Barings, added, “This transaction is a perfect example of our ability to advise clients, as well to source and execute attractive value add investments in a short period of time. It also follows shortly after our sale of Via Pola in Milan, another asset where we successfully implemented our business plan to deliver strong returns for our investors.”
Source : Barings Real Estate