Barings acquires 4.400 sq m office redevelopment in Porta Nuova, Milan
Barings Real Estate Advisers has acquired a circa 4,400 sq m office redevelopment at the edge of Porta Nuova, the main business district of Milan.
The investment is being made through Italy Opportunity Fund, an Italian alternative investment fund set up on behalf of clients and managed by Kryalos SGR.
The refurbishment will fully transform the property into a Grade A office space priced at a competitive rent in a market experiencing strong demand for high quality accommodation.
The property is located on Via Ceresio at the north-west edge of Porta Nuova, within close proximity to the Monumentale metro station, as well as Milano Porta Garibaldi train and metro station which provides connections to Milan Central Station. The asset is a 20 minute drive from Linate Airport.
Valeria Falcone (pictured), Managing Director for Italy at Barings Real Estate Advisers, says: “This asset provides a compelling opportunity to invest in the creation of a high quality office scheme, with the potential for increased lettable space, in a prime location which has growing demand but limited supply. This represents our fourth acquisition in Italy as we continue to deliver on our strategy of delivering attractive returns for our clients.”
Gunther Deutsch, Managing Director and Head of Investment Transactions Europe at Barings Real Estate Advisers, says: “This acquisition builds on our recent activity to grow our Italian platform and expand our portfolio of assets with core and value add strategies in Northern Italy, as well as demonstrating our ability to source and act quickly on off-market transactions. We continue to explore further opportunities to grow the platform through acquisitions and forward funded developments.”
Paolo Bottelli, CEO of Kryalos SGR, adds: “This acquisition through the Italy Opportunity Fund affirms Barings’ appetite for investment into the Italian real estate market, in particular in areas with high potential like Porta Nuova in Milan, contributing to the process of urban regeneration and redevelopment.”
Barings Real Estate Advisers is part of Barings LLC, one of the world’s largest diversified real estate investment managers. The group is an active investor in private and public, equity and debt markets, and provides core, value-added, and opportunistic investment and advisory services to institutional and other qualified investors around the globe.