UBS Asset Management's Real Estate & Private Markets (REPM) business has completed the acquisition of La Forgiatura business campus in Milan for a ‘low three-digit million amount’, the company announced on Wednesday.
The asset was acquired from a Milan-based developer on behalf of two institutional investors and represents the first institutional club deal of UBS's European Club Deal strategy, aimed at delivering customised real estate solutions to its institutional clients.
La Forgiatura is located on the site of a regenerated nineteenth century industrial complex in Zona Certosa, in the North-Western part of Milan. The redevelopment features 30,000 m2 of Grade A office space spread over nine buildings plus a further one under construction, and over 400 on-site parking spaces. The campus is Milan’s first entirely carbon-free scheme and holds LEED certification.
La Forgiatura is fully let to national and international occupiers including Econocom, Zeiss, Medtronic, and VF Corporation, providing a WAULT of around nine years. The campus’ 10th building, currently under construction, is due to complete in 2019 and has already been pre-let.
Tilman Hickl, head of Customized Clients Solutions at REPM, commented: ‘The successful closing of our first Club Deal with institutional clients in Europe, with the acquisition of a promising and income-generating business campus, marks the beginning of a new era of sustainable real estate solutions for our clients.
‘This transaction re-affirms investors' confidence in our deal-focused strategy, underpinned by its ability to immediately deploy capital and accurately allocate properties to our investors.’