AXA Investment Managers – Real Assets has completed the acquisition of a centrally located office complex in Milan, Italy.
The leading real estate portfolio and asset manager acquired Via Battistotti Sassi, 11, for a total of €33.5 million (£25 million) on behalf of a dedicated real estate alternative investment fund launched and managed by AXA REIM SGR 2.
Located on the eastern side of Milan, and just 2.5 kilometres from the city centre, the office complex benefits from bus, tram and rail links at present, with an additional metro line currently under construction.
Via Battistotti Sassi, 11, is comprised of two distinct buildings which in total provide circa 31,000 sq m (333,000 sq ft) of commercial space. They encompass a gross lettable area of 16,863 sq m (181,500 sq ft) and tenants benefit from car parking space for up to 237 vehicles.
At present, the office buildings are 96 per cent let to 12 tenants, all of which offer strong covenants and cover a broad range of industries. The wider area has been the subject of a large scale regeneration project which began in the early 2000s and has so far delivered a number of office, retail, residential and cultural schemes along with significant improvements to the public realm.
Head of asset management and transactions in Italy on behalf of the AXA Investment Managers – Real Assets division, Alessio Lucentini, believes that the Italian commercial market is presently growing in strength.
He says; “Via Battistotti Sassi, 11, is a strong asset located in an increasingly popular area of the great Northern Italian city of Milan, making it an excellent addition to the Fund’s portfolio.
“Having identified further asset management potential in combination with the promising transportation prospects for the area, we view this as a compelling investment opportunity to create value for the Fund.
“This transaction comes shortly after the acquisition, on behalf of the Fund, of Torre Beta, another prime Milan office building, demonstrating our confidence in the long term prospects of the Italian real estate market.”