Italian REIT Coima Res has announced the off-market acquisition of an office complex in Via Monte Rosa 93, Milan for €57 mln.
The deal was structured as a sale-and-leaseback with Teur, a sub-holding of the global industrial conglomerate Techint Group.
The purchase price represents a discount of 3.7% versus the asset's fair value of €59.2 mln, as estimated by CBRE. The fair value implies an EPRA net initial yield of 5.0% and an EPRA topped-up net initial yield of 5.2% (excluding the vacant portion of the property).
The asset generates gross passing rent of €3.5 mln per year.
Located in an established semi-central Milan business district, Monte Rosa is a core plus asset offering 14,500 m2 of net lettable area over four buildings. It is mainly used by Techint Group as its Italian headquarters under a nine-year lease. Other tenants include PricewaterhouseCoopers and an Italian tourism company. The overall weighted average lease term is 5.2 years.
Coima said it plans to lease up the vacant space in the short term, regear the leases in the medium term and potentially increase the area of the building by 30%.
The purchase is financed by Coima Res using its own cash.
'The acquisition of the Techint headquarters in Milan allows Coima Res to progress further in its investment programme in line with
the planned timeline and target yields further enhanced with the potential growth deriving from the expected rental income dynamics,' said Manfredi Catella, Founder and CEO of Coima Res.
