Cromwell Property Group expects further single-asset mandates from Asia, the manager said today as it announced the acquisition of a 22,700sqm office asset in Milan on behalf of a new Korean partner.

IPE Real Assets understands that Cromwell, on behalf of Korea Investment Management, is paying around €90m to buy the Pirelli Tyre facility in Milan from the Kryalos SGR managed All Star fund.

Cromwell will manage the asset which is fully let to tyre manufacturer Pirelli.

Following the transaction, Cromwell now manages 19 assets in Italy valued at €560m, covering over 370,000sqm and let to more than 50 tenants.

Cromwell CEO Paul Weightman, said: “As part of Cromwell’s invest to manage strategy, we have been engaging with potential capital partners who are keen to access our unique funds and asset management platform in Europe.

“As a result, we are continually on the look-out for new opportunities to deploy capital both in Italy and in the rest of Europe. This opportunity is the first of what we anticipate will be a series of single-asset mandates for Asian capital partners.”

Lorenzo Caroleo, Cromwell’s head of Italy, said the transaction represents the start of a new relationship with a capital partner that Cromwell is looking to work within more European jurisdictions.

“We are also proud to have acquired such a prestigious strategic asset, let on a very long lease to Pirelli Tyre, one of the most successful and well-recognised Italian brands in the world.”

Paolo Bottelli, Kryalos’ CEO, said: “The disposal of the Pirelli R&D asset confirms our ability to meet investor expectations and deliver successful returns.

“It also highlights that the interest in the Milan real estate market is not only confined to the CBD, but is also reaching areas like the Bicocca business district, increasingly on the radar of professional investors.”