Italian REIT Coima Res has completed the planned acquisition of the so-called Vodafone Village in Milan for €200 mln, in line with the asset's latest appraised value.
Coima, which went public earlier this year becoming the third real estate investment trust to launch in the country, said at the time of the IPO that it planned to use the proceeds to partly finance the purchase of the complex, which consists of a total of five buildings providing 89,000 m2.
The deal represents a gross yield of 6.9%.
Coima has bought three of the five buildings, taking over around 61,000 m2 entirely let to the Vodafone Group until 31 January 2027 with an automatic renewal for an additional six-year period. The Leed-certified assets generate €13.84 mln in gross rents.
As part of the agreement, Coima has also secured a pre-emption right to purchase the remaining two buildings before year-end 2019.
In addition, the company said it has received two loan facilities for a total of €216 mln from lenders Banca IMI, Unicredit, BNP and ING to finance its investment strategy. One debt facility of €172 mln has a spread of 180 basis points over the three-month Euribor while the other, which will be used exclusively to finance the Vodafone Village deal, amounts to €44 mln and has a spread of 150 basis points over the three-month Euribor.
Coima Res is managed by Coima Res and is backed by Qatar's sovereign wealth fund, Qatar Investment Authority (QIA), which in March agreed to back the IPO by taking 14.45 million shares in exchange for the transfer of 96 assets mainly used as bank branches leased to the Deutsche Bank Group.
