Investment manager Barings’s BREEVA II value-add real estate fund has agreed the acquisition of a 12,600 m2 office complex in Milan for €40 mln from Deka.
The vacant asset offers significant redevelopment potential and Barings has already identified a range of asset management initiatives to drive value and deliver a Grade A office asset, including the improvement of the building’s ESG credentials and the introduction of retail amenities at the ground floor. The asset also benefits from parking provisions for 136 cars and 16 motorcycles.
Marco Corti, managing director, country head of Italy for Barings, said: ‘This was an attractive opportunity for our strategy to acquire and reposition outdated office stock as Grade A space with market-leading ESG credentials. Milan is a market we know very well and one where we see significant opportunities for value as more occupiers make sustainability a priority and look outside the traditionally prime areas of the city for space.’
Gunther Deutsch, head of Transactions Europe and managing director at Barings, commented: ‘This was our sixth deal for this strategy in Milan - with three opportunities already realised and sold - and further builds our track record for a hands-on approach to investment and asset management.’
