Coima checks into 4* hotel in central Milan

The 4-star hotel with 79 keys on 11 floors, across a total area of about 3,000 m2, boasts an average occupancy rate of 90% and is leased until 2041.

The transaction was conducted through the COIMA core fund II, established in 2012 with an investment strategy focused on the purchase and management of properties located in the main Italian cities, in particular Milan.

In addition to the hotel, the asset includes two units for retail use located on the ground floor, leased to commercial establishments.

Completely renovated in 2021, when it was transformed from an office into a hospitality asset, the hotel is currently leased until 2041, with a possible extension for a further nine years.

The property is LEED Gold certified and is part of Coima's portfolio rotation strategy, favouring certified and sustainable properties.

The fund's portfolio currently includes direct investments in eight properties covering around 30,000 m2, as well as four indirect investments in other real estate funds and companies.

Gabriele Bonfiglioli, chief investment officer, Coima, said: 'The acquisition of this building is consistent with the investment strategy of our Core II fund, which aims to focus on quality buildings in a central and well-connected location, with attractive returns in a context market that begins to offer interesting opportunities.'

Alexei Dal Pastro, Covivio's CEO for Italy, said: 'This operation completes the enhancement process of the asset, which has already undergone an important redevelopment project which included the transformation of the original intended use of offices into accommodation, guaranteeing a significant creation of value for our shareholders.'

The acquisition was supported by Simmons & Simmons as legal consultant, by Alma Led as tax advisor and by the Savills Hospitality team as commercial advisor. The financing of the operation was secured by BPER Banca with the support of GTA and Osborne Clark for the legal part.