Kennedy Wilson’s Olimpia Investment Fund sells Via Valtellina in Milan for EUR69.5m
Global real estate investment company Kennedy Wilson’s Olimpia Investment Fund for the sale of Via Valtellina, in Milan, Italy, to COIMA SGR for EUR69.5 million, reflecting a gross initial yield of 5.5 per cent (net initial yield 4.4 per cent).
Via Valtellina was acquired in January 2016 as part of a portfolio of nine offices fully let to the Italian government. Via Valtellina comprises 12 buildings let to the Italian government’s Customs and Finance ministries, with a term to expiry of 4.5 years.
The site is a key gateway to a significant mixed-use commercial and residential development around the larger Scalo Farini railway yard in Milan, the largest of seven disused railway stations planned for regeneration. In July 2017, the Accordo di Programma (AdP) for the regeneration of the area was signed between local authorities and other public administrations resulting in zoning for a new mixed-used city centre development of 37,909 sq m.
Mary Ricks, President and CEO of Kennedy Wilson Europe, says: “Unlocking the potential of this significant urban site, in Milan’s city centre, was a key achievement for the team, in conjunction with the local councillor for urbanism and the city planning department. The strong cooperation between all parties culminated in this important milestone for Olimpia Investment Fund and its partners, delivering a strategic gateway to the larger Farini railway yard regeneration, within close proximity to the established Porta Nuova district. We are confident in COIMA SGR’s ability to deliver the next phase of this exciting regeneration.”
Giuseppe Oriani, CEO Europe at Savills Investment Management, says: “We are particularly happy to have contributed to the development of such an important area for Milan, and the investment of a leading investor like Kennedy Wilson.”
Advisers to the Olimpia Investment Fund were DLA Piper, Perelli Consulting and Studio Belvedere Inzaghi and Partners.