Benson Elliot, the UK-based private equity real estate fund manager, has acquired adjacent business parks near Linate Airport in Milan from BNP Paribas and the Toscanini fund, managed by Generali Real Estate.
Financial details were not disclosed.
The deals were executed through the acquisition of 100% of the units in Italian real estate investment fund ER Office Fund 3 (EROF3), which is managed by Europa Risorse, a Bank of Italy regulated fund manager.
'We’ve been engaged in the Milan market for decades, but see a particularly compelling investment story right now, as growing demand for grade A office space confronts very limited new supply. We’re well positioned to capitalise on the opportunity given our local capabilities, and look forward to delivering some attractive new office accommodation into this increasingly strategic locale,' said Joseph De Leo, Benson Elliot senior partner.
Segreen Business Park, acquired from BNP Paribas, comprises 27,000 m2 of grade A office space in two buildings, with parking for over 900 cars. The project was delivered to LEED Gold and Platinum certifications between 2011 and 2013. Segreen Business Park is over 90% occupied by a group of largely international corporates, including Kraft Heinz, Lenovo and Zimmer Biomet.
Nest Business Park, acquired from the Toscanini fund, comprises 18,000 m2 of office space in three buildings together with parking for over 500 cars. Originally developed in the 1980s, the buildings were previously the Italian headquarters of Microsoft. Currently vacant, the property presents an opportunity for substantial refurbishment and integration with Segreen Business Park, according to Benson Elliot.
Europa Risorse will implement the value-enhancement strategy, consolidating the two business parks to create a larger, better organised offering, the investor said. The finished product is expected to achieve LEED Gold certification, and provide amenities including restaurants, a conference centre, a nursery and a gym.
Segrate is situated just 10km from Milan’s city centre and a few minutes from Linate International Airport. Linate is expected to see over €150 mln of investment in the near term as the airport adds a new terminal. The Milan metro is also due to be extended to Segrate, in part to support the c. €1.4bn development of Westfield Milano, scheduled for opening in 2021.
