The portfolio has a Gross Asset Value of over €260 mln, including a significant Capex programme.

It consists of six standing assets with 590 units that have a Net Leasable Area of more than 50,500 m2. The assets include modern as well as value-add mixed-use towers and iconic neoclassical buildings that are largely located in the historic center of Milan.

The transaction follows an earlier purchase of a residential property portfolio in the city in 2021. Following completion of this latest acquisition, Partners Group's total residential property portfolio in Italy will have a combined stabilized GAV of around €800 mln and more than 1,300 units.

As part of its value creation plan, Partners Group aims to transform the portfolio into a Class A product, with key initiatives including renovating units and investing in amenities. Partners Group will also add the portfolio to OnPlace, a property management platform in Milan that the firm launched in 2022 in partnership with Investire SGR.

OnPlace acts as a platform for renting properties in the city and provides existing tenants with access to add-on services, including concierge, furniture packages, on-site maintenance, and brand partnerships.

Marco Denari, member of management, Real Estate Europe, Partners Group, said: 'This acquisition is further confirmation of our thematic conviction in Milan's prime residential market. The Portfolio provides uplift potential, and its underlying rents can be re-aligned to market following a comprehensive refurbishment program.'

The Portfolio adds to Partners Group's existing residential exposure in Europe, which includes a €400 mln joint venture in Germany and €200 mln joint venture in Spain. In both cases, Partners Group is looking to provide a high-quality real estate product and is working with specialist local operating partners to meet local tenant needs.

Henrik Orrbeck, managing director, co-head Real Estate Europe, Partners Group, added: 'As a thematic investor in the residential sector, we follow the New Living trends that are influencing how people live, including urbanization, increased mobility, and lower home ownership ratios. To capitalize on these trends, we look to acquire value-add assets in central locations with limited supply and then transform them. Given the operational intensity of these assets, we manage real estate portfolios like businesses, building vertical depth in our research, sourcing, and relationships with operating partners.'

Partners Group was advised by Dils, Legance, Clifford Chance, and Rina Prime on the transaction.