COIMA SGR is paying €175m for the last property at the Porta Nuova development in Milan.

The manager’s Coima Opportunity Fund II (COFII) is buying the Pirellino real estate complex at via Giovanni Battista Pirelli 39 from the Municipality of Milan through a public auction process.

The transaction is expected to be concluded by the end of the year.

The 26-floor Pirelli 39 tower represents the final step in the redevelopment of Porta Nuova. The building was originally designed in the 1950s to host the headquarters of the municipal technical offices, which remained there until 2013, and was later left unused. 

Manfredi Catella, founder and CEO, Coima SGR, said: “The acquisition of Pirelli 39 consolidates the next phase of Porta Nuova which will almost double in size to reach an overall investment in excess of €3bn.”

Currently, Coima is regenerating four new sites in the Porta Nuova district, totalling over 200,000sqm with total investments of over €1bn, in addition to the over €2bn of investments already completed and operated by Cioma in the same district.

The manager’s COFII fund recently raised €650m. Including leverage, the fund has €1.5bn capital to invest.

Catella said Coima has completed €1bn worth of acquisitions in the last 12 months and COFII has deployed over 60% of its funds.