BC Partners has made its first real estate investment in Italy via its debut European value-add property fund.
The manager’s BC Partners European Real Estate I (BCPERE I) fund and Kervis Group have bought a portfolio in downtown Milan from Bocconi University for an undisclosed amount.
The Via Balilla 16-18 and Via Siracusa 5-7 assets have previously served as the SDA Bocconi School of Management and student accommodation, respectively.
BC Partners and Kervis expect to redevelop the two main assets in the portfolio into upmarket new-build apartments for-sale.
Laurian Douin, partner at BC Partners, said: “We are very pleased to conclude BC Partners’ first real estate investment in Italy with the help of Kervis and hope this is the first of many.
“Milan’s residential market offers healthy fundamentals and attractive dynamics, with constrained supply of new-build quality residential product and strong affordability metrics for Milanese households.”
Giulio Bentivoglio, the CEO of Kervis, said: “Milan’s residential sector has now come under the spotlight as many institutional investors have entered the market. We believe we are well placed to thrive in this niche.
“We are delighted to partner with BC Partners and look forward to investing in new projects together leveraging our strong track record and local expertise in the residential sector.”
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