Allianz Real Estate, the property arm of insurance giant Allianz, has acquired a prime office asset in Milan for €140 mln in a sale-and-leaseback deal with Crédit Agricole Italia.
The acquisition has been made through the Kensington fund, managed by Blackstone's Italian asset manager Kryalos, on behalf of several Allianz group insurance companies. Allianz is a shareholder in Kensington.
The asset, composed of three interconnected buildings facing Via Armorari and Via Cantù in Milan's central business district, is spread over six floors above-ground plus two basements with a gross building area of 10,806 m2. It was built in the early 20th century and fully refurbished across 2014-2019.
The Via Armorari building will remain a key seat of banking firm Crédit Agricole Italia, following the signing of a nine-year lease agreement for the entire asset.
'Despite the current environment, the acquisition of this prime office asset in Milan underscores our strong belief in the long-term strength of the market,' said Donato Saponara, head of transactions for West Europe & country head of Italy, Allianz Real Estate.
'It fits well within Allianz Real Estate’s investment strategy, adding a very high quality asset to our portfolio that provides long-term, stable cash flows underpinned by a prime tenant,' Saponara added.
Allianz Real Estate said it was continuing to target growth in Italy, lining up equity investments for the next three years. The focus will to be prime assets offering long term value, particularly through office assets in Milan and Rome alongside out-of-town logistics facilities and select investments in alternative asset classes.
Across 2019, the firm’s Italian deals exceeded €400 mln and included office, logistic and redevelopment schemes in Milan, Rome and Trieste covering more than 100.000 m2.
'This important acquisition of a highly prestigious, centrally located asset confirms our trust in the Italian real estate market and the asset class of Milan offices,' said Paolo Bottelli, managing director of Kryalos.
The deal brings the Kensington fund's holdings in Milan to more than 42,000 m2.
