The Arete Alternative Real Estate Investment Fund, a Blackstone-sponsored closed-end real estate fund, has completed the sale of a trophy asset in Milan, Italy.
The asset was sold to the club deal of institutional investors and UHNWI coordinated by Mediobanca.
Regulated investment manager Kryalos SGR acted on behalf of Arete and will continue to manage the asset through the newly established Alternative Real Estate Fund Milan Trophy RE Fund 4.
The property in Via Montebello 18 has an area of over 30,000 m2 with eight office floors above ground and two underground floors mainly used as archives and canteen.
It is located in the core of Milan’s CBD, between the historical city centre and the new Porta Nuova business district, at walking distance of several of the city’s iconic historical landmarks such as Castello Sforzesco and Palazzo Brera, within one of the most sought-after areas for national and international investors.
Paolo Bottelli, CEO of Kryalos SGR, said: ‘The finalization of this transaction is particularly important for us because not only does confirm and strengthen the partnership with Mediobanca, but it represents a sector benchmark in relation to the green financing which is an excellent tool to support our sustainability objectives and, more generally, a decisive support to promote and facilitate the transition to a greener economic model.’
Dino Gioseffi, Mediobanca’s coverage of large corporations and head of real estate, added: ‘For Mediobanca, this is the fourth real estate club deal born from the collaboration between Private Banking and Corporate & Investment Banking. In the past two years we have been able to generate value transactions, characterized by iconic properties with solid and quality lessors, structuring and following the entire acquisition process according to market best practices.’
Entirely leased to one of the major Italian banking institutions, Via Montebello 18 recently underwent a major renovation that upgraded the property to the highest quality and ESG standards, turning it into a Grade A green asset.
The lending banks have granted a green loan for the purchase of the LEED Gold and BREEAM In-Use Very Good certified asset.
Under the loan conditions, SGR will constantly monitor the performance of the property in relation to environmental impact and compliance with green principles aspects, in addition to providing the banks with a periodically updated Green Report.
