Italian REIT Coima Res has agreed to acquire the Pavilion complex in Milan's Porta Nuova district from landlord Unicredit for €45 mln, plus a potential earn-out of up to €5 mln.
Closing of the acquisition is expected by the end of 2018.
The Pavilion is a LEED Gold-certified multi-purpose building designed by Michele De Lucchi with a total gross surface area (SLP) of 3,000 m2. The asset is currently used by UniCredit as exhibition center, hosting events and conferences.
Coima Res said that it plans to convert the scheme to offices and retail ahead of the opening of the nearby Biblioteca degli Alberi park. Unicredit is expected to vacate the Pavilion by the end of 2018.
Manfredi Catella, founder and CEO of Coima Res, commented: 'Coima RES is continuing to build up its portfolio concentrating in Milan and on the submarkets which are expected to experience the strongest rental growth such as Porta Nuova. Prime rents in Porta Nuova have reached the €550/m2 level for office use and the €1,500/m2 level for retail use, this positive trend is expected to continue as the area consolidates further.'