DEGI Deutsche Gesellschaft für Immobilienfonds mbH has found a new investment opportunity for its DEGI INTERNATIONAL fund in Rome and is purchasing the future headquarters of Procter & Gamble in Italy from the Italian developer Parsitalia S.r.l. advised by Cushman & Wakefield, by way of a forward commitment.
The office project, with a total investment volume of approximately €122 million, will be completed by the end of 2008, and is located in the attractive office submarket E.U.R. in the southern part of the Italian capital. Around two-thirds of the 17,585 m² of office space have already been let in advance to the Italian head office of Procter & Gamble Holding S.r.l. DEGI has been advised by Savills.
Coveted Class-A office space
High-quality, modern-style office space is scarce in the important Roman office submarket E.U.R. Only two per cent of the space is standing vacant. So DEGI's Speaker of the Management Board Bärbel Schomberg is confident that the two-year rental guarantee from completion granted by the seller will not be needed for long: "Thanks to the high quality of this property, we've already got some initial inquiries from prospective tenants."
The six-story office building in the Viale Oceano Pacifico has underground parking for 220 cars as well as 2,189 m² of storage space. The building's ground plan is V-shaped; the floors can be divided into up to four rental units. In contrast to the Central Business District in Rome's historic inner city, the E.U.R. submarket is particularly appreciated by large tenants, since here, in addition to convenient links to the road and subway networks and Fiumicino and Ciampino Airports, they also find large floor areas in state-of-the-art design. Rome's economic structure is dominated by the service sector and particularly by public institutions, which means the Italian capital's office market is less susceptible to cyclical fluctuations.
Once this building has been purchased following completion, DEGI INTERNATIONAL will own two retail properties and three office properties in Italy. In all, the fund has invested in eleven different countries.