Government investment funds from Azerbaijan, Abu Dhabi and Qatar have agreed to invest a combined €350 mln to buy and redevelop three separate properties in Milan, in a joint venture with Italian asset manager Coima Sgr, according to the Wall Street Journal.
Government investment funds from Azerbaijan, Abu Dhabi and Qatar have agreed to invest a combined €350 mln to buy and redevelop three separate properties in Milan, in a joint venture with Italian asset manager Coima Sgr, according to the Wall Street Journal.
The Abu Dhabi Investment Authority emerged as the capital provider behing the acquisition of a 1960s-era building that will be demolished to make way for a new tower. Coima Sgr announced earlier this week that it had bought the project at Via Melchiorre Gioia in central Milan from Fondi Immobili Pubblici (FIP), a government fund managed by Investire Immobiliare Sgr, part of Banca Finnat Euramerica.
The asset, formerly the head office of the public pension fund INPS, was bought on behalf of Coima's Porta Nuova Gioia Fund. Financial details were not disclosed.
The scheme has not been in use since 2012 and features 18 floors above ground and three basement levels spanning a total surface area of 40,000 m2.
Coima plans to demolish the existing structure to make way for a new tower to be designed by architects Pelli Clarke Pelli.
'This exciting project demonstrates that funds backed by institutional investors are ready to invest in economic development operations capable of favouring urban regeneration and redevelopment,' said Manfredi Catella, founder & CEO of Coima SGR.
Meanwhile, the State Oil Fund of the Republic of Azerbaijan is understood to be buying a building from the Italian chamber of commerce. Similarly, the Qatar Investment Authority agreed to buy a property from BNP Paribas.
All three projects will be managed by Coima SGR, which already worked with the Qatar sovereign wealth fund on the €2 bn Porta Nuova development site, currently fully owned by QIA.
