Italian real estate investment trust COIMA has expanded its Milan portfolio with the acquisition of Via Valtellina site from a Kennedy Wilson fund.
Kennedy Wilson said its Olimpia Investment Fund has sold Via Valtellina to Coima for €69.5m.
Via Valtellina was acquired by Kennedy Wilson’s Italian closed-end real estate alternative investment fund in January 2016 as part of a portfolio of nine offices fully let to the Italian government. The fund is managed by Savills Investment Management SGR.
Via Valtellina comprises 12 buildings let to the Italian government’s Customs and Finance ministries, with a term to expiry of 4.5 years.
The site is a key gateway to a mixed-use commercial and residential development around the larger Scalo Farini railway yard in Milan, the largest of seven disused railway stations planned for regeneration.
Last week, Coima acquired two sites in Milan for €78.9m as part of a €700m urban regeneration project investment in the Porta Nuova neighbourhood. The projects include developments in Via Bonnet and Via Melchiorre Gioia 22.
Mary Ricks, the president and CEO of Kennedy Wilson Europe, said: “Unlocking the potential of this significant urban site, in Milan’s city centre, was a key achievement for the team, in conjunction with the local councillor for urbanism and the city planning department.
“The strong cooperation between all parties culminated in this important milestone for Olimpia Investment Fund and its partners, delivering a strategic gateway to the larger Farini railway yard regeneration, within close proximity to the established Porta Nuova district. We are confident in Coima’s ability to deliver the next phase of this exciting regeneration.”