London-headquartered luxury real estate specialist Trophaeum has purchased a prime retail asset in Milan for a figure understood to be in the €15 mln range, according to industry sources.
The property, at via Sant Andrea 8 in the city's designer shopping district, the Quadrilatero della Moda, was acquired from a private vendor and comprises around 650 m2 of store space plus a showroom.
The property was acquired vacant, according to Trophaeum managing director, Matt Farrell and has since been let to a principal luxury fashion group. Nearby brands include Chanel, Givenchy, Jimmy Choo and Yves Saint Laurent.
'Milan is a very interesting market - we're seeing very compelling retail demand in this city,' Farrell told PropertyEU. 'By immediately letting the asset, we have already delivered a very significant value uplift to the property.'
The via Sant Andrea property is the second Milan asset that Trophaeum has publicly reported buying, after inking the acquisition of a mixed-use development scheme for €34.5 mln from private Italian development company Mascagni Developers in December.
However, it is understood that the firm has now amassed around a dozen assets in the Italian fashion hub, as it pursues growth in London and other major European gateway cities over the next five years.
Farrell said that the firm was looking to spend some £10 bn (€11.5 bn) on high-end retail assets through a newly launched investment vehicle, with planned leverage of 55-65%. London, Paris and Milan remain the principal targets.
The firm owns the majority of Albermarle Street in Mayfair, London, where it achieved significant relettings to relaunch the West End street, attracting brands such as Aquazzura, Alexander Wang and Thom Browne, with Cartier and Givenchy the latest openinings.
