Coima pays €58m for office complex in Milan

Coima pays €58m for office complex in Milan
Pirelli 32 Office Complex in Milan's Porta Nuova Image: Coima

Italy-based real estate investment trust (REIT) Coima Res has agreed to acquire an office complex in Via Giovanni Battista Pirelli, 32, Milan (Pirelli 32) for €58.2 million.

The property, which will be acquired through Coima Opportunity Fund I, which is 78.29% owned by Coima Res will be sold by Effepi Real Estate Fund, a real estate investment fund managed by Generali Real Estate S.p.A. SGR and entirely owned by the Unicredit Pension Fund. The transaction is expected to close by the end of Q1 2022.

Pirelli 32 is a 13-storey building with a surface area of about 7,400 square metres, located along the east-west axis connecting the two high-speed railway stations of Milano Centrale and Milano Garibaldi, within the north-east quadrant of Porta Nuova where the area’s new developments are concentrated.

The development of the property will involve an investment of over €30m, with the objectives of substantially contributing to the mitigation of climate change according to the European taxonomy framework for eco-sustainable economic activities (EU 2020/852) for the construction of new buildings. The investment plan will be partially financed with available resources and bank debt.

”Based on the expected net rents after the repositioning, Pirelli 32’s estimated net stabilised yield will be above 5%. Following the acquisition of Pirelli 32, Coima Res’s exposure to Milan will increase to 92% of its portfolio and exposure in Milano Porta Nuova will rise to 61% of its portfolio, with 72,000 sqm in Porta Nuova across 8 properties,” said Coima in a press release.

The Porta Nuova area, developed by the Coima platform, has undergone a radical transformation over the last decade and today represents one of the most successful business districts in Milan. More than 35,000 employees currently work at Porta Nuova in different sectors including financial services (such as UniCredit, BNP Paribas, AXA, HSBC, China Construction Bank, representing about 30% of employees), technology and telecommunications (including Microsoft, Samsung, Amazon, Google, LinkedIn, TIM, representing about 20% of employees), engineering & energy (Maire Tecnimont), consulting (Accenture), pharmaceutical (Santen, Amgen), fashion (Versace, Moschino) and sports (FC Internazionale). The number of employees working in Porta Nuova is expected to grow by more than 20% by 2025, with the further consolidation of the area and the transfer of new management offices in the area.

Manfredi Catella, Founder and CEO of COIMA RES, commented: “The acquisition of Pirelli 32 is in line with our strategy to increase our exposure to Milan Porta Nuova, which is rapidly becoming Milan’s main post-Covid urban campus. This project fits well with the Coima platform’s extensive experience in creating value through repositioning buildings, tying in with the Porta Nuova Gioia redevelopment programme, which involves the construction and redevelopment of over 100,000 sqm of space for office, residential and commercial use, as well as the redevelopment of public areas, contributing to the creation of direct, indirect and induced added value for the construction sector alone of over €1.5 billion, as well as 8,000 in the coming years.”