Italy's Coima Res has acquired two fully-let office properties in Milan in an off-market deal worth €158 mln.
The two assets are the Microsoft headquarters in Milan Porta Nuova (Via Pasubio 21) valued at €97.5 mln and the Philips headquarters in Milan Bicocca (Viale Sarca 235) valued at €60.5 mln.
According to Coima, the transactions represent a blended EPRA topped-up net initial yield of 5.0%, or an EPRA net initial yield of 4.5%.
The Microsoft headquarters is a 9,400 m2 newly built property, LEED Gold certified, designed by international architecture firm Herzog & de Meuron and finalised in 2016. It is entirely leased to the AAA-rated Microsoft with a 4.4 years weighted average unexpired lease. The property is in the fast-growing Milan Porta Nuova business district.
The Philips headquarters is a 17,500 m2 refurbished property, LEED Platinum certified, which was built in the 1980s and refurbished in 2016-2017, designed by Italian architect Alessandro Scandurra.
The building is fully let with a 7.0 years weighted average lease term. The property serves as the Italian headquarters of Philips, which occupies more than half of the property, with the remainder leased to other tenants operating in different sectors. The property is located in the Bicocca area.
Coima said that the two acquisitions were in line with its strategy of focusing on high quality office properties in Milan. The deal increases the firm's portfolio exposure to Milan to 87% (from 85%), the exposure to Porta Nuova to 47% (from 44%) and the exposure to offices to 82% (from 79%). The transaction further diversifies Coima Res' tenant base.
The acquisition of the two properties is being executed through the Coima Core Fund VI (a fund 87% owned by Coima Res) which is buying units in funds held by a group of Italian investors for a consideration of Euro 111 mln.
This means that Coima Res is acquiring a 'look-through' stake in the two properties equal to 82% for the Microsoft headquarters and 77% for the Philips headquarters. Through the transaction, Coima Res is also acquiring a 13% 'look-through' stake in a portfolio of five technical assets in the North and Centre of Italy fully leased to Telecom Italia worth €7.8 mln.
The acquisitions will be financed primarily through the deployment of Coima Res' liquidity deriving from the recent Eurcenter disposal plus the Vodafone transaction.
