Real estate investment manager Barings has sold an office property in Milan on behalf of its pan-European value-add real estate fund BREEVA I and through an Italian real estate fund managed by Savills IM.
Financial details were not disclosed.
The property at Corso di Porta Vigentina 9, a Grade A office building, has been purchased by an Italian insurance company, part of a French group, who will occupy the property.
Having acquired the 5,000 m2 asset in May 2019 when it was vacant, Barings undertook a comprehensive refurbishment of the property, now completed, repositioning it as a Grade A office building with a LEED Platinum target rating, in line with the strong ESG focus of the value-add strategy.
Further improvements have been made to modernise and enhance the building including the façade, its technical facilities and entrance hall. In 2020, the redevelopment project, designed by the Italian architectural firm Lombardini22, was awarded with the international prize AEC Excellence Award.
Marco Corti, managing director and country head real estate Italy, commented: 'We have continued to demonstrate our ability to reposition well located assets into high quality real estate, maximising the full potential of our investments, including ensuring they align with the ESG requirements of modern occupiers.
'The asset has been refurbished and sold ahead of the initial business plan in less than 24 months, generating significant value for our investors.
'This is our third value-add sale in Milan as we continue to capitalise on the high demand and limited availability of quality office space in the city in order to deliver strong returns to our clients.'
Gunther Deutsch, managing director, head of real estate transactions – Europe at Barings, added: 'This sale is the second office refurbishment within months following one transaction in Paris where we completely refurbished and successfully sold an hôtel particulier style building on behalf of the same fund.
'It underlines our ongoing interest in acquiring well located office buildings that need to be upgraded and converted to modern office space. As well as refurbishments, we also look for CBD office development opportunities in the major European cities across our jurisdictions.
'Aside the office sector we continue to target investments with value add character in both the logistics and BTR and student accommodation sectors.'
GVA Redilco acted as commercial advisor. K&L Gates acted as legal advisor.
Lombardini22 acted as lead architect, engineer, director of works and sustainability LEED consultant. MCM acted as project manager.
