Milan, 17 November 2022
Kryalos SGR announces that All Star, a closed-end real estate fund sponsored by funds managed by Blackstone, has finalized the disposal of an office building in Milan’s Porta Romana district to an Italian real estate fund sponsored by Macquarie Asset Management on behalf of a managed account for approximately €119 million.
The historic property spans 20,600 m2 and was acquired by the All Star fund in March 2017. Built in the early 1900s, the building was fully renovated in 2020 to incorporate modern design and sustainability standards and has since been awarded a ‘Very Good’ rating under BREEAM’s sustainable building certification scheme.
The iconic property divided vertically over three blocks, offers tenants flexible and efficient floorplans. It is fully leased to a diverse mix of tenants active in the fintech, green energy, and food and beverage sectors.
The Porta Romana district is a dynamic business and residential neighborhood, benefitting from great local amenities and connectivity via the city’s metro. The area is undergoing urban regeneration and is expected to accommodate some of the key facilities for the 2026 Winter Olympic Games.
Italy continues to remain a core investment market for Blackstone Real Estate across different asset classes and this sale confirms the strong market dynamics for high-quality office assets with ESG credentials in major Italian cities.
Paolo Bottelli, CEO of Kryalos SGR, said: “The real estate market in Italy continues to perform well, and this is especially the case in Milan, which is leading an urban regeneration transformation and thus increasing its potential in terms of further growth. There is strong demand for renting offices, especially if they have a strategic location and high standards in terms of efficiency and sustainability, as is the case with this building.”
Kryalos SGR will continue managing the asset for the purchaser.