Italian fund manager Coima has acquired the Via Valtellina site from Kennedy Wilson’s Olimpia Investment Fund for €69.5 mln, reflecting a net initial yield of 4.4%.
Via Valtellina consists of 12 buildings let to the Italian government’s Customs and Finance ministries, with a term to expiry of 4.5 years.
KW’s Olimpia bought the asset in January 2016 as part of a nine-office portfolio let to the Italian government. In July 2017, local authorities and other public administrations signed the project for the regeneration of the site.
Mary Ricks, president and CEO of Kennedy Wilson Europe, commented: ‘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,’ she added.
In this transaction, Olimpia Investment Fund was advised by DLA Piper, Perelli Consulting and Studio Belvedere Inzaghi and Partners.