The European arm of Brisbane-headquartered Cromwell Property Group has acquired the Pirelli Tyre facility in Milan on behalf of Korea Investment Management (KIM), kicking off a new partnership with Korea's oldest asset management firm.
Financial details were not disclosed but local reports placed the deal in the high €80 mln range.
Cromwell has been appointed asset manager of the 22,700 m2 investment, which was divested by Italian fund manager Kryalos' All Star fund. The property comprises four above ground and four below ground floors and is fully let on a long lease to tyre manufacturer Pirelli.
The asset is located in the up-and-coming Bicocca district of Milan, close to a number of other Pirelli facilities and international businesses including Philips, ING and Deutsche Bank, Cromwell said.
New capital partner
KIM, established in 1974, is the oldest asset manager in Korea, managing over $40 bn (€36 bn) assets under management for institutions, fund distributors and retail investors. The firm represents a new capital partner for Cromwell, which has guided Asian capital to Europe in the past across a raft of deals.
Cromwell CEO Paul Weightman said: 'As part of Cromwell’s "Invest to Manage" strategy, we have been engaging with potential capital partners who are keen to access our unique funds and asset management platform in Europe.
'As a result, we are continually on the look-out for new opportunities to deploy capital both in Italy and in the rest of Europe. This opportunity is the first of what we anticipate will be a series of single-asset mandates for Asian capital partners,' he added.
'We are delighted with this transaction as it represents the start of a new relationship with a capital partner that Cromwell is looking to work with in more European jurisdictions,' noted Lorenzo Caroleo, Cromwell’s head of Italy.
'We are also proud to have acquired such a prestigious strategic asset, let on a very long lease to Pirelli Tyre, one of the most successful and well-recognised Italian brands in the world.'
Said Paolo Bottelli, Kryalos’ CEO: 'The disposal of the Pirelli R&D asset confirms our ability to meet investor expectations and deliver successful returns. It also highlights that the interest in the Milan real estate market is not only confined to the CBD, but is also reaching areas like the Bicocca business district.'