Hines buys Aviva's Italian HQ from BlackRock

Hines Italia, a joint venture of US developer-investor Hines and the Italian Catella family, has acquired an office building in Milan on behalf of its Hines Italia Value Added Fund.

Located at Via Scarsellini, the scheme was bought from fund manager BlackRock's Europe Property Fund III. Financial details were not disclosed.

Dubbed LightBuilding, the 11-storey property is situated in the northeastern part of the city and provides around 17.000 m2 of space. Completed in 2010, it is currently 75% leased to a number of international companies including Aviva which uses it as its Italian headquarters.

'We have presented offers for acquisitions worth over €500 mln over the past three months,' commented Manfredi Catella, CEO of Hines Italia. 'The LightBuilding fits perfectly well with the investment criteria of our fund, which should be fully invested by year-end.' The vehicle will generate an internal rate of return of 12%, he added.

BlackRock was advised by Eurotekna and Osborne Clarke while Hines Italia Sgr was represented by K&LGates. Cushman & Wakefield and Colliers International brokered the deal.