Partners Group, the global private markets investment manager, has completed the acquisition of two prime Milanese office properties on behalf of its clients, from Unicredito Immobiliare Uno, an Italian closed-end real estate vehicle through a secondary transaction.
The combined value of both properties, located in Via Monte Rosa and Viale Sarca, is €233 million. The acquired properties provide high quality cash flows and feature long term lease contracts with excellent tenants. Via Monte Rosa 91 is one of the most iconic Milanese office assets, designed by star-architect Renzo Piano. Tenants include Il Sole 24 Ore, a leading Italian publishing company, as well as PricewaterhouseCoopers. Viale Sarca 222 had been converted from a former industrial property into an office building that is now the headquarters of Pirelli & C. S.p.A., one of the world’s major tire companies.
Partners Group’s real estate secondary team offered a tailored liquidity solution in one of the seller’s investment vehicles and therefore secured the assets at an entry price which should enable the team to realize significant value in these two well-known properties in a market with constantly improving fundamentals. Partners Group’s real estate secondary team will retain Torre SGR as its Italian real estate operator for both assets and will work on its value creation strategy to further improve their cash-flow profiles.
Fabian Neuenschwander, senior real estate professional at Partners Group based in Zug, Switzerland, comments: “This transaction again demonstrated the importance of having a deep local network and the ability to provide tailored solutions to generate win-win situations for both the seller and buyer. This acquisition perfectly suits our investment strategy to structure non-standard liquidity solutions to satisfy investors’ desire for liquidity and to buy high quality assets below replacement costs in markets with strong fundamentals.