Global real estate investment manager Barings has acquired a mixed-use office and retail building in Milan on behalf of institutional investors.
The property on Viale Cassala represents Barings's third value-add transaction in the Italian city, following the purchase of a 23,000 m2 building on Via Pola in January 2017 for €44.3 mln and a redevelopment on Via Ceresio 12 months later.
The latest acquisition is an 8,700 m2 building divided 50/50 between retail and office space. The former is already fully let, while the offices are set to be redeveloped into high-quality, energy efficient Grade A space.
The purchase price was not disclosed.
The building is located 300 metres from Romolo Metro station and a short distance by train from the city centre and main railway station. The area is seen as one of the most vibrant parts of Milan and contains several renowned educational institutions including the International University of Languages and Media.
Valeria Falcone, managing director, real estate for Italy at Barings, said: 'The asset has great visibility on the internal ring road and sits close to Romolo tube station, one stop from Porta Genova. The area is growing with undersupplied demand for Grade A office space.
'We will look to unlock the potential of the asset through an active redevelopment programme that will modernise the asset and offer tenants a contemporary, fit-for-purpose space.'
In 2018 Barings' funds executed a number of value-add transactions across Europe with a total value of approximately €536 mln. The company's target markets are the UK, France, Germany, Spain, Sweden and Finland. Last month it made its Swedish residential debut by acquiring six buildings in Stockholm through a forward commitment for €128 mln.