French real estate investment manager Inovalis has acquired an office building located at the Milanofiori Business Park in Milan’s Assago district from Ardian and Prelios SGR.
The transaction was conducted through a closed-end investment company (SICAF) wholly owned by Ardian and managed by Prelios. Financial details were not disclosed.
The building has a commercial area of approx. 18,000 m2 and 125 parking spaces. It consists of six floors for executive use, 1 ground floor with two food & beverage units serving the tenants, and a basement floor providing parking and archive facilities.
The building is located in Milan’s Milanofiori Business Park, a mixed-use real estate complex including offices, residential properties, shops, a multi-screen cinema, hotel, fitness centre and university campus in the south-west of Milan.
The area is strategically connected to the rest of the city via the M2 metro line, which provides access to the city’s three main railway stations (Garibaldi, Centrale and Cadorna), and is a 20-minute drive from Linate international airport.
Ardian and Prelios completed major renovation plan on the property between 2018 and 2021. This included a total renovation of the spaces not yet leased and the complete redevelopment of the ground floor.
A new double-height lobby was added to the building, alongside the refurbishment of the common areas. The maximum capacity of the floors was also increased. The building has obtained BREEAM certification.
The redevelopment has boosted rental activity and increased occupancy in the building, attracting leading national and international companies which have rewarded the quality level of the property compared to other buildings in Business Park. As a result, occupancy has increased from 51% at the time of purchase in 2017 to 100% today.
Matteo Minardi, head of real estate Italy at Ardian said: 'While some parts of the office market outside of city centres have faced challenges in recent months, the redevelopment and extensive improvements completed on this property have seen it reach full occupancy and attract leading international tenants.'
Savills acted as commercial advisor for the transaction. Ardian and Prelios were supported by Studio Legale Gattai, Minoli, Partners as legal and tax advisor. CBRE acted as technical advisor.