Partners Group is acquiring a €260m residential portfolio in northern Italy from Fondo Pensione Cariplo.

The global private markets firm said it has agreed to buy the 50,500sqm portfolio of prime residential properties in Milan, consisting of six standing assets with 590 units.

The deal expands the firm’s residential property portfolio in Italy to €800m in gross asset value comprising over 1,300 units. Partners Group’s has a global real estate portfolio valued at $43bn.

Marco Denari, member of management for real estate Europe at Partners Group, said: “This acquisition is further confirmation of our thematic conviction in Milan’s prime residential market. The portfolio provides uplift potential, and its underlying rents can be re-aligned to market following a comprehensive refurbishment programme.

“Our transformational value creation plan will focus on updating the underlying assets to be in line with our existing modern and amenitised offering in the city. Partners Group’s local presence will help us stay in touch with changing tenant demands, efficiently manage these assets, and create value.”

Henrik Orrbeck, managing director and co-head real estate Europe at Partners Group, said: “As a thematic investor in the residential sector, we follow the new living trends that are influencing how people live, including urbanisation, increased mobility and lower home-ownership ratios.

“To capitalise on these trends, we look to acquire value-add assets in central locations with limited supply and then transform them. Given the operational intensity of these assets, we manage real estate portfolios like businesses, building vertical depth in our research, sourcing, and relationships with operating partners.”

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