Italian REIT Coima Res has agreed the purchase of an office complex in Via Giovanni Battista Pirelli, 32, Milan for €58.2 mln.
The property, that will be acquired through the Coima Opportunity Fund I, was sold by Effepi Real Estate Fund, an alternative real estate investment fund whose shares are entirely hold by the UniCredit Pension Fund, managed by Generali Real Estate. The transaction is expected to close by the end of Q1 2022.
Pirelli 32 is an 80,000 sq ft (7,400 m2) office building spread across 13 storeys. It will be redeveloped with a focus on environmental and social sustainability, with a planned investment of €30 mln. The building will not use fossil fuels, and more than 65% of its annual energy needs will be derived from renewable sources.
Based on the expected net rents after the repositioning, Pirelli 32’s estimated net stabilized return will be above 5%.
The acquisition will be funded mainly from the sale of a property at Viale Sarca 235, announced in August 2021, at a 36% premium to the acquisition price.
Manfredi Catella, founder and CEO of Coima Res, said: 'The acquisition of Pirelli 32 is in line with our strategy of increasing our exposure to Porta Nuova, which is rapidly becoming Milan’s main post-Covid urban campus. This project fits well with the Coima platform's extensive experience in creating value through repositioning buildings, tying in with the Porta Nuova Gioia redevelopment programme, which involves the construction and redevelopment of over 1 million sq ft of space for office, residential and commercial use, as well as the redevelopment of public areas. This will contribute to the creation of direct, indirect and induced added value for the construction sector alone of over €1.5 bn, as well as providing 8,000 jobs in the coming years.'
Following the acquisition of Pirelli 32, Coima Res’ exposure to Milan will increase to 92% of its portfolio and exposure to Milan Porta Nuova will rise to 61% of its portfolio.
