Italian listed real estate company COIMA RES has acquired two buildings in Milan for €46 mln, taking the value of its office portfolio to €630 mln after an eight-month acquisition spree.
The Grade A assets were acquired from Immobiliare Deruta 2005, wholly owned by the German real estate fund for institutional investors Warburg–HIH Invest Real Estate. The two buildings, with a combined are of 13,650 m2, are leased to the BNL-BNP Paribas Group and and generate €3.525 mln in gross annual rent, with a 7.5% gross yield based on the purchase price and an EPRA net initial yield of 6.8%. The lease on the buildings expires in 2021.
The two buildings are in Via Privata Deruta, in north-east Milan, just by MM2 Udine underground station and close to the motorway network.
‘Thanks to the acquisition of the buildings in Via Deruta in Milan, in just eight months COIMA RES has been able to invest in a quality real estate portfolio of over €600m with a higher yield than expected and a risk profile strictly under control,’ said CEO Manfredi Catella.
COIMA RES has already outlined a plan of building upgrades designed to increase occupancy of the office complex and to improve energy performance and guarantee the flexibility tenants demand. The project was realised by the architectural firm Park.
COIMA RES has financed the acquisition through a €20m mortgage loan from ING, which brings leverage to 45%, in line with the company’s target.
Having invested in 105 properties in Milan and Rome with a combined rentable area of 161,500 m2 and a total value of €630 mln, ahead of schedule, the company expects to be able to distribute its first dividend in 2017. COIMA RES will present its annual report to shareholders in February.
