Cromwell Property Group, acting on behalf of a new Korean capital partner, Korea Investment Management, has acquired the Pirelli Tyre facility in Milan. The company has been appointed asset manager to the investment. The vendor is the “All Star” fund managed by Kryalos SGR.
The asset has a net lettable area of 22,700m² and comprises four floors above ground and four floors below. It is located in the established, and still rapidly expanding, Bicocca district of Milan, close to a number of other Pirelli facilities and international businesses including Philips, ING and Deutsche Bank. The purchase price was not disclosed.
Commenting on the interest from Asian capital with regards to investing in Europe, Cromwell CEO Paul Weightman said: “As part of Cromwell’s ‘Invest to Manage’ strategy, we have been engaging with potential capital partners who are keen to access our unique funds and asset management platform in Europe. As a result, we are continually on the look-out for new opportunities to deploy capital both in Italy and in the rest of Europe. This opportunity is the first of what we anticipate will be a series of single-asset mandates for Asian capital partners."
Lorenzo Caroleo, Cromwell’s Head of Italy commented on the significance of the acquisition: “We are delighted with this transaction as it represents the start of a new relationship with a capital partner that Cromwell is looking to work within more European jurisdictions. We are also proud to have acquired such a prestigious strategic asset, let on a very long lease to Pirelli Tyre, one of the most successful and well-recognised Italian brands in the world. For real estate investments, Milan is the most liquid and dynamic city in Italy with some of the fastest growing office rents in Europe. This acquisition demonstrates the advantage created by having a locally-based team able to guide investors to identify and secure high-quality assets let on strong covenants, capable of delivering stable income over the longer term.”
Paolo Bottelli, Kryalos’ CEO commented on the divestment: “The disposal of the Pirelli R&D asset confirms our ability to meet investor expectations and deliver successful returns. It also highlights that the interest in the Milan real estate market is not only confined to the CBD, but is also reaching areas like the Bicocca business district, increasingly on the radar of professional investors ".
