Korea-based financial holding company Meritz Financial Group has acquired a 50% stake in an office property in Milan belonging to Italian REIT Coima Res.
The deal, which values the asset at €213 mln, was executed via a Korean trust.
The asset is the headquarter of Vodafone’s Italian operations, and is entirely leased with a weighted average lease term of more than seven years, Coima said.
'The transaction demonstrates the ability of the Coima platform to team up with primary global investors in addition to validating Coima Res’ portfolio valuation and increasing its diversification,' said Manfredi Catella, Coima's founder and CEO.
'The transaction generates additional firepower for further acquisitions in Milan where we already have 90% of our portfolio,' Catella added.
The transaction values the complex at a 4% premium to acquisition price, and a 2% premium to the last appraisal value, according to the Italian firm, representing an EPRA net initial yield of 6.1%.
The deal results in the reimbursement by Coima of €130 mln of financing, plus the signing of a new debt deal for a corresponding amount at comparable economic conditions, the firm said. The asset will be moved into a new fund, the Coima Core Fund VIII, 50% of which will be divested to Meritz for €44 mln.
Coima will continue to retain governance over the complex, with the Korean investor acting as financial partner. The new fund will be managed by Coima Sgr, its asset management division.
Meritz was advised on the acquisition by KTB Asset Management of Korea and TrustCapital Advisors Investment Management.
