M&G Real Estate has invested €136m to buy an office building in the central business district of Porta Nuova in Milan, Italy.
Barings said its value-add European real estate fund has sold the 16,500sqm 9-11 Via Pola property following a comprehensive redevelopment.
The building was acquired in December 2016 by a fund managed by an Italian manager, fully subscribed by Barings European Real Estate Value Add Fund.
Barings said the building is now 85% let to a range of businesses.
Valeria Falcone, portfolio manager and real estate country head – Italy, said: “This is a great example of our ability to create value, in this case by delivering an innovative and high-quality Grade A office space.
“The sale of the newly-refurbished Via Pola is in line with our pan-European value-add investment strategy and is an excellent result for the fund. The office market in Milan remains strong, so we’re confident that 9-11 Via Pola will continue to deliver value for its new owners.”
Gunther Deutsch, managing director, head of real estate transactions – Europe for Barings, said: “This transaction marks the first “turn around” and sale of a value-add asset that we advised on in Italy on behalf of our pan-European value-add investment strategy.
“With a sizeable pipeline and additional assets to be sold in the coming months, we look for ways to continue to demonstrate our commitment in this market. We remain interested in identifying assets from core+ to value-add in the office, logistics and high-street retail sectors.”
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