Italian asset manager Coima has acquired Via Pirelli 35 in Milan, the former Telecom Italia headquarters, from a major German investment fund.
Financial details were not disclosed.
The transaction was made on bahalf of the Coima Opportunity Fund II (COFII), currently Italy's largest discretionary real estate fund with an investment capacity, including leverage, of over €1.5 bn.
COFII has now completed its capital raising phase with over €650 mln in subscriptions, Coima said.
The fund’s strategy is focused on the refurbishment of existing buildings and urban regeneration deals in Italy, with a particular focus on the office sector.
Coima plans to refurbish and reposition the newly acquired asset by the end of 2022, while maintaining its designated use as office space. It currently comprises nine above-ground floors and two underground floors, across a total surface area of over 40,000 m2.
The asset manager said that Pirelli 35 would form part of the new development project for Porta Nuova Gioia for which Coima is developing an overall masterplan.
In addition to the former Telecom building, the masterplan will include the former building of the Municipal Technical Offices of Via Pirelli 39, the former INPS building in Via Melchiorre Gioia 22, as well as the area at the intersection of Via Melchiorre Gioia and Via Giovanni Battista Pirelli. The combined total area spans over 150,000 m2 and 20,000 m2 of public spaces.
'The acquisition of the the Pirelli 35 building is part of Coima’s strategic acquisition programme for a total value of over €1.5 bn intended to complete the regeneration of the former Garibaldi Repubblica railway station, transforming it into the Porta Nuova district,' said Manfredi Catella, founder and CEO of Coima.
'The vision of a unitary masterplan that adds a new interconnected, liveable and integrated area in the urban fabric should be viewed in the context of its contribution to Milan’s emergence as an international benchmark for sustainable cities,' Catella added.
Coima said it has also secured a €152 mln, five-year loan for both the purchase and development of the building. The debt was secured by a pool of banks including UniCredit, as coordinator, Banca IMI, Banco BPM and UBI Banca.
Coima was advised by law firms Shearman & Sterling for civil law matters, Belvedere Inzaghi & Partners for administrative matters, DLA Piper for the loan and by LED Taxand for tax matters.