AEW announces that it has completed the development of South Milan Park, a prime Grade A, c. 92,000m2 logistics scheme close to Milan, acquired off-market back in 2021 on behalf of its specialist pan-European logistics strategy, LOGISTIS.
South Milan Park has been developed in two phases, delivering c. 68,000m2 and c. 24,000m2 of space respectively. The scheme comprises six units across two buildings designed to a high specification including a target BREEAM New Construction rating of ‘Excellent’. The rooftop of the main building is equipped with photovoltaic panels dedicated to on-site consumption by the tenant. The project is fully let on a 12-year lease to Il Gigante, a leading Italian large-scale organized distribution company.
South Milan is one of Italy’s main logistics hubs, located 25km away from Milan city centre and benefits from direct access to the express road (SP2), leading to the Milan ring road (A50) within 15 minutes and connecting to the A1 motorway.
Ludovic Bernini, Fund Manager of LOGISTIS at AEW, commented: “Through this investment, LOGISTIS will be delivering a major logistics development in Italy, aligned with the Fund’s strategy of investing in develop-to-core opportunities in prime locations. LOGISTIS has an established track record in Italy, having invested in the country for over 20 years, and this acquisition adds to our growing footprint in Southern Europe. The development saw us working again with our trusted local development partner, E2K, to create a modern, environmentally sustainable space which meets occupier requirements.”
Massimiliano Bernes, AEW’s Country Head for Italy, added: “South Milan Park is situated in an established market with a lack of available Grade A logistics stock and robust demand dynamics, underpinning our approach to develop these units on a speculative basis. With vacancy at just 3% in the South Milan market, we were confident in attracting strong interest from occupiers and secured a tenant shortly after the development phase began. We were also able to source this project off-market, demonstrating our deep-rooted connections in the market.”
Image provided by FTI Consulting.
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