Kryalos Sgr divests Florence real estate complex for €31m

Italian asset manager Kryalos Sgr has completed the sale of a real estate complex in Florence, Italy to a club deal of private investors for €31 mln.

The 14,000 m2 property in Viale della Giovine Italia, 17 was built in the 1960s-early 1970s as the HQ for the Italian national newspaper La Nazione.

It was acquired in 2014 by Pacific 1 fund, a Blackstone-sponsored closed-end real estate fund managed by Kryalos Sgr, through a sale and leaseback deal.

The eight-building property is situated in the Santa Croce neighbourhood of Florence’s historic centre, overlooking Viale della Giovine Italia, Via Ferdinando Paolieri and Largo Pietro Annigoni.

After the main tenants released the spaces three years ago, Kryalos Sgr repositioned several areas of the complex into offices and retail space.

The property is now entirely leased to 16 primary Italian and international tenants with a weighted average lease length of over five years.

Following the high-quality, environmentally friendly, and energy-efficient renovations, the building was awarded the BREAAM-in-use certification in March 2023.

Paolo Bottelli, CEO of Kryalos SGR, said: ‘The transaction confirms that a careful asset management activity, such as the one conducted by Kryalos for the property in viale della Giovine Italia, together with the execution of targeted improvement projects to increase the value of the investment, make it possible to reposition and make attractive properties strategically located in Italy for investors looking for stabilised products. This is an extremely important deal for the Florentine real estate market which also demonstrates the solidity of the urban office sector, both in terms of the rental market and in terms of capital markets.”

Kryalos SGR was supported by Chiomenti and EY, while the buyer was supported by Paratore Vannini & Partners – Studio Legale e Tributario and by Elaia 1986 Società Benefit.