Rome-based REIT Beni Stabili has inked a sale-and-leasebank transaction with Italian banking group Credito Valtellinese to acquire a portfolio of 17 properties in Milan for €117.7 mln.
The mix of retail and office assets will be leased back to entities belonging to the Credito Valtellinese group through double-net lease agreements with minimum durations varying between nine and 12 years.
'This acquisition allows our group to consolidate our exposure in the Milan real estate office market. Once again, this transaction proves our capacity to create value through the selective and strategic rotation of properties in our target market. We are honoured to start this new partnership with Credito Valtellinese, one of the historical leading banks active in Northern Italy,' commented Alexei Dal Pastro, general manager of Beni Stabili.
Over 80% of the 21,700 m2 portfolio is located in Milan, and includes prime offices such as Piazza San Fedele 4 and Milan Corso Magenta 59-63. It is expected to generate over €7 mln in gross rents, implying an initial passing yield of 6%.
The deal is in line with Beni Stabili's strategy to increase the fund's exposure to Milan, with a target of 80% of properties by 2020.
It also serves to diversify the tenant base, further reducing the weight of Telecom Italia on the company's gross rental base. Earlier this year, Beni Stabili placed its €1.5 bn Telecom Italia portfolio into a SICAF to reduce its exposure to the Italian utility company.
