Kryalos SGR announces that the sale of a trophy asset, located in via Montebello 18, Milan, has been exclusively awarded to a club deal of institutional investors and UHNWI arranged by Mediobanca for €243 million.
The exclusivity was awarded following a competitive sale process which involved the main national and international market operators. The offers received were reviewed and assessed with the assistance of a pool of specialised advisors. The offer from Mediobanca, a leading player in the Italian and European financial markets, was considered the most competitive, also by the fund’s Advisory Committee. The closing of the transaction is expected by July 2022.
Owned by the Arete Alternative Real Estate Investment Fund, managed by Kryalos SGR and ultimately invested by Blackstone, the property has an area of over 30,000 sqm with eight office floors above ground and two underground floors mainly used as archives and canteen.
Built in 1963, Via Montebello 18 recently underwent a major renovation that upgraded the property to the highest quality and ESG standards, turning it into a Grade A green asset. The property is LEED Gold and BREEAM In-Use Very Good certified.
The irreplaceable asset is excellently located in the core of Milan’s CBD, between the historical city centre and the new Porta Nuova business district, at walking distance of several of the city’s iconic historical landmarks such as Castello Sforzesco and Palazzo Brera, within one of the most sought-after areas for national and international investors.
The asset, entirely leased to one of the major Italian banking institutions, will be managed by the newly established Alternative Real Estate Fund Milan Trophy RE Fund 4 managed by Kryalos SGR – the fourth fund subscribed by a club deal of investors arranged by Mediobanca – in consideration of the SGR’s specific knowledge of the property and its outstanding track record.
“This new transaction with Mediobanca – said Paolo Bottelli, CEO of Kryalos SGR – confirms the investment potential of club-deals in real estate and demonstrates that Milan’s appeal remains high for institutional investors, strongly interested in prime office properties located in the CBD of the city. Italy and the office market in Milan continue to be the targets for real estate investors, with investment volumes growing since the beginning of 2022”.
“This fourth real estate operation in Milan with the club deal formula confirms the attractiveness of high-profile real estate for Ultra-High-Net Worth customers – comments Angelo Viganò, Head of Mediobanca Private Banking. All the more so in a time of growing inflationary pressure, investments in prestigious income properties represent an investment solution aimed at protecting and enhancing assets.
“The transaction testifies to Mediobanca’s exclusive ability, thanks to the work of the advisory team dedicated to real estate, to identify prestigious properties with quality tenants, structuring and following the entire acquisition process according to market best practices. “- comments Dino Gioseffi, Coverage Larg Corp & Head of Real Estate of Mediobanca.