Invesco Real Estate has announced the acquisition of Via Broletto, an office property in Milan's historical CBD for Invesco's flagship pan-European open-ended fund. This is the first Italian acquisition for this fund. Invesco intends to undertake an extensive redevelopment of the property as part of a manage-to-core strategy to transform the property into a prime asset, currently a rarity in this district of Milan.
Carlo Romanò, Invesco Real Estate’s director - transactions, Italy says: "It is extremely rare to find grade-A properties with a modern look and modern facilities in Milan's historical centre as the majority of the available buildings could benefit from a light refurbishment. We believe Via Broletto, upon completion of its full redevelopment programme, will be a unique lease opportunity within the marketplace."
Via Broletto is located close to Piazza Cordusio, a prime office location in the historical CBD. The property consists of two buildings, built in the 19th century and 1960s respectively, with seven floors, car parking and retail facilities. It is located on one of the most prominent roads in the historic CBD. For over 50 years, the property has been the main branch for a main banking group, who will be vacating at the end of 2015 as part of a pre-planned relocation, prior to IRE's redevelopment project.
Carlo continued: "We anticipate the recovery of the historical CDB office market in this specific location, where grade A assets are under supplied and cannot meet the demands from corporate occupiers. We are very excited about Via Broletto also for the fact that its rare large floor plate of 1,200 sqm across the majority of its floors is quite unique and is one of the asset’s main attractions. We believe that following the buildings' redevelopment, which will begin in Q1 2016, that the asset will fit perfectly, in terms of size and location for occupiers looking for top quality spaces within a landmark property.
"In our view, to be able to offer an efficient grade-A and Leed-labelled 1,200m² GLA floor space in an under supplied market in the historical CBD of Milan is an excellent investment for our flagship fund. We are aiming to transform the building so it truly offers a unique product in the historical CBD."
Invesco Real Estate acquired Via Broletto from Investire SGR Spa Fund. The legal advisor to IRE was Francesco Sanna, partner of K&L Gates. Gabetti Property Solutions S.P.A., acted as property advisor to IRE.
