Stam Europe, Area poised to buy EUR 240m Italian property fund

A consortium of Stam Europe and Area Property Partners is close to clinching the acquisition of the Comune di Milano I real estate fund from BNP Paribas REIM, PropertyEU has learned.

French investment manager Stam Europe and UK-based fund manager Area Property Partners are taking over the closed-end investment vehicle for a net equity price of EUR 87 mln and the assumption of EUR 153 mln in debt. This gives the fund an asset value of EUR 240 mln.

Market sources say that the deal has yet to receive final approval by the Milan municipal authorities. This is expected to take place in early September, with the closing due by the end of the month. The fund was launched in 2007 through the transfer of residential and office properties in the centre of the city by the municipality of Milan.

The impending transaction follows the launch at the end of last year of Fondo Comune di Milano II, a EUR 100 mln property fund managed by BNP Paribas REIM.

Also in Italy, Charter Hall Office REIT has announced the completion of the sale of the Macquarie Office Italy closed-end real estate fund, managed by CBRE Investors. The vehicle is the owner of City Central, two office buildings located near the central station of Milan. The properties were sold to an unnamed Italian institutional investor for nearly EUR 120 mln, reflecting a yield of 6.4%. They were recently refurbished and provide roughly 41,000 m² of total space. JLL advised Charter Hall on the deal.