COIMA RES S.p.A. has signed a preliminary purchase agreement to acquire the Pavilion complex in Milan Porta Nuova for €45m with a potential earn-out of up to €5m. The closing of the acquisition is expected by year-end.
Currently owned by UniCredit, the Pavilion is a LEED Gold multipurpose building designed by Michele De Lucchi with a total gross surface area of c.3,000 m². The property is used by UniCredit as an exhibition centre, hosting events and conferences. The investment strategy foresees the potential conversion of the asset into offices and retail property.
The Pavilion represents a unique investment opportunity for COIMA RES given its strategic location in the heart of Porta Nuova, between Piazza Gae Aulenti and the new “Biblioteca degli Alberi” park which is soon to be opened to the public and that will represent the third largest park within Milan. The opening of the park will also increase the pedestrian area of Porta Nuova to more than 150,000 m².
UniCredit is expected to vacate the Pavilion by the end of 2018 giving COIMA RES the opportunity to reposition the asset leveraging on its strategic location.
Manfredi Catella, Founder and CEO of COIMA RES, commented: “COIMA RES is continuing to build its portfolio concentrating on Milan and on the submarkets which are expected to experience a strong rental growth. Prime rents in Porta Nuova have reached the €550/m² level for office use and the €1,500/m² level for retail use, this positive trend is expected to continue as the area consolidates further.”
