Italian REIT Coima Res has agreed to purchase an office complex in Milan's Porta Nuova area from the Mediolanum Real Estate fund, managed by Mediolanum Gestione Fondi Sgr, for €56 mln.
The announcement comes a week after Coima's acquisition of the Pavillion asset in Porta Nuova for €45 mln.
The core-plus asset was bought for an EPRA net initial yield of 3.5% and is expected to generate a net yield of 5% following active asset management and an €8 mln capex programme on the property.
The deal, which is slated to close by the end of the third quarter of 2018, will increase Coima Res' exposure to Milan to 76% of its portfolio with the growing Porta Nuova central business district representing some 30% of total assets.
Tocqueville is a 10-storey office building providing 12,300 m2 of space and with the bulk of its leases expiring in 2021, providing an opportunity to re-gear contracts at current rental values.
The main occupier of the building is gaming company Sisal which occupies 89% of the space paying €2.4 mln in rents a year.