AXA Investment Managers - Real Assets (AXA IM - Real Assets) has acquired a landmark office asset in Via Monterosa 91 Milan from MPO - an Italian real estate fund 100% owned by funds managed and/or advised by Partners Group and managed by Torre SGR (controlled by Fortress Investment Group LLC and Unicredit Spa), for a total purchase price of approximately €220m. The asset has been purchased on behalf of AXA Selectiv’ Immo and AXA CoRE Europe funds, both managed by AXA REIM SGP.
The core office complex in Via Monterosa 91 is composed of five office blocks arranged across three buildings, intricately designed into a U-shaped development surrounding an attractive courtyard. Designed by Italian architect Renzo Piano in 2004, the complex, with a total gross area of approximately 86,000m², offers of grade-A office space fully let to one of the Italy’s leading national newspaper groups, and two additional corporate tenants.
Located in Fiera, the old trade quarter of Milan, the area has undergone a radical transformation in recent years following various initiatives undertaken to enhance its commercial viability and attractiveness, now making it one of the most popular business locations within Milan. The asset benefit from a very good accessibility by private transportation and public transportation with the close proximity to a number of key public transport links including the local metro stations, Lotto Fiera (Line 1) and Lotto (Line 5).
The transaction is in line with both AXA CoRE Europe and AXA Selectiv’ Immo’s objective to acquire core, high-quality assets in key European cities, providing investors with long-term stable income through capitalising on individual market dynamics and timing.
Alessio Lucentini, local head of asset management & transactions in Italy at AXA IM - Real Assets, commented: “Through utilising our local expertise, we have been able to acquire on behalf of our client, a core, Grade A asset in the popular and central Fiera district of Milan, adding to our existing portfolio of €1.4bn of AUM (as of end of May 2016), having completed over €1.2bn of transactions over the last three years. Transactions of such size are rare in Milan and is illustrative of our confidence in both the wider Italian market and this specific landmark asset.”
Antoine Aubry, fund manager at AXA IM - Real Assets commented: “Our significant allocation of client funds into the acquisition of this asset underpins our belief in the landmark Monterosa complex and its ability to sustain occupational demand over the long term. Through aligning the best interests and strategies of two key funds, we have been able to successfully complete this purchase, with a key focus for AXA CoRe Europe to be present in key European cities such as Milan, and for AXA Selectiv’ Immo to acquire high quality institutional grade assets with the objective of increasing the overall fund size.”
