Barings Real Estate Advisers (formerly Cornerstone Real Estate Advisers) has acquired its first asset in Italy, purchasing a Milan office asset for €44.35 mln from an Italian insurance group.
The deal sees Barings acquire the asset in an off-market transaction through Value Add I Italy, an alternative investment fund managed by Kryalos, formerly Henderson Global Investors' Italian fund arm.
'The acquisition of this office building which is strategically located in Milan is perfectly in line with our pan-European value add investment strategy and it’s an excellent entry point for Barings Real Estate Advisers in Italy,' commented Gunther Deutsch, head of transactions at Barings Real Estate Advisers.
The 23,000 m2 office building is located at Via Pola 9/11 within the Porta Nuova business district. Constructed in 1970, it is arranged over nine floors above ground with offices and retail as well as two further underground floors, plus 144 parking spaces. It is currently partially let and will be refurbished to reposition the asset.
'This off-market acquisition is exactly the type of transaction we are looking to target and represents an important milestone for our investment strategy in Italy. The asset benefits from a prime location within the CBD district, an area with fast-growing demand and limited supply, with excellent real estate fundamentals that will be repositioned through active asset management,' said Valeria Falcone, Italy country manager at Barings Real Estate Advisers.
'The launch of the Value Add I Italy fund confirms the interest of global investors and the strong standing of Barings, to invest in the Italian real estate market, committing capital to real estate development and asset management opportunities in major Italian cities,' added Paolo Bottelli, CEO of Kryalos SGR.
