Italy’s COIMA is paying €58.2 million for an office complex in Milan’s Porta Nuova district and will develop the property at a cost of €30 million.
The 7,400 sq m asset, at Via Giovanni Battista Pirelli, 32, Milan was sold by Effepi Real Estate Fund, an alternative real estate investment fund wholly owned by UniCredit Pension Fund.
The deal is expected to close by the end of Q1 2022 and the building has been acquired on behalf of COIMA Opportunity Fund I, which is 78.29% owned by COIMA RES.
Known as Pirelli 32, the 13-storey building lies on the east-west axis that connects high-speed train stations Milano Centrale and Milano Garibaldi and is in the north-east quadrant of Porta Nuova which is an area of new development.
Development of the building will focus on environmental and social sustainability. The building will not use fossil fuels, and more than 65% of its annual energy needs will be derived from renewable sources.
Based on the expected net rents after repositioning, Pirelli 32’s estimated net stabilised return will be above 5%.
COIMA founder and CEO Manfredi Catella said the acquisition is in line with the company’s strategy of increasing its exposure to Porta Nuova, which is “rapidly becoming Milan’s main post-Covid urban campus”.
The acquisition will increase COIMA RES’s portfolio exposure to Milan will increase to 92%, and its exposure to Milan Porta Nuova will rise to 61% – it will have 72,000 sq m of space in Porta Nuova in eight properties.