Cromwell Property Group has sold the Piazza Affari 2 office building in Milan on behalf of Cromwell European REIT (CEREIT).
This transaction marks the first major step in CEREIT’s previously stated strategy to divest non-core and non-strategic assets over the next 2-3 years to recycle into CEREIT’s redevelopment and asset enhancement programme.
The property was built in the 1930s and refurbished in 2017. Affari is an office building located in Milan’s CBD with 723m2 of net lettable area, eight floors above ground and two basement levels, holding a BREEAM “Very Good” rating certificate.
Lorenzo Caroleo, Head of Italy at Cromwell Property Group, said: “The strong buyer interest that we received for Affari 2 highlights the level of demand in Italy’s major cities for very well-located Grade A office assets. Buildings with good ESG credentials and high BREEAM / LEED certifications are highly sought after by corporate tenants in key cities like Milan, where Grade A vacancies are currently under 3%, representing an all-time low. We are confident that we will be able to take advantage of this trend through CEREIT’s first such redevelopment, the 10,000 sq m Nervesa 21 office redevelopment in Milan which is targeting LEED platinum status and is due for completion by the end of 2023."
