Principal Real Estate Europe, part of Principal Financial Group's real estate business, has acquired an office building in Milan from Amundi Real Estate Italia for €34 mln, reflecting a net initial yield of 4.4%.
The 7,000 m2 asset, located in Via Giovanni Battista Pirelli 18, was acquired for the Principal European Office Fund.
‘This latest acquisition in Italy highlights our team’s ability to source high quality buildings with excellent potential for value and income enhancement against the background of an extremely competitive market,' said Paul Muno, managing director and head of investor relations Germany at Principal Real Estate Europe.
‘We are currently experiencing an uptick in interest from international investors keen to deploy capital to buy attractively priced assets in Italy,’ he added.
With a target volume of €600 mln, the Principal European Office Fund has investments in Amsterdam, Lisbon, Milan, Paris and Toulouse.
Cushman & Wakefield advised Principal.
Legal advice to the purchaser was provided by Jones Day, with BonelliErede acting for the vendor.
Technical advice was by Yard, while Ernst & Young were responsible for taxation issues.