Invel Real Estate has acquired an office tower in Milan for €12m alongside an institutional investor from Aedes Società di Investimento Immobiliare Quotata S.p.A., an Italian REIT listed on the Milan Stock Exchange. This latest acquisition brings Invel’s AUM in Italy to approximately €850m.
Viale Richard 5 is a c. 8,000m² office tower that is located in the vibrant Navigli district, popular with national and multinational design and fashion companies. Invel has identified a comprehensive capex programme that will see it invest c. €16m to realise the asset’s potential to deliver value. This will include a thorough refurbishment to achieve best-in-class environmental certifications such as BREEAM and LEED.
Invel’s Head of Acquisitions in Italy, Francesco Molinari, said: “This transaction is a strong endorsement of our local knowledge and network, which has allowed us to work directly with the vendor to select specific assets where we can leverage our track record in asset management in order to create value. While COVID-19 has had a significant impact on markets in the last six months, it has accelerated the need for high-quality office properties and the appetite for ESG-compliant buildings. We have already identified an ambitious redevelopment and repositioning programme for the building, targeting internationally recognised building certifications that make high environmental standards a priority.”