The lending banks have granted a green loan for the purchase of the LEED Gold and BREEAM In-Use Very Good certified asset.
Kryalos SGR will continue to manage the property through the new Milan Trophy RE Fund 4 subscribed by the club deal.
Kryalos SGR today announced that the Arete Alternative Real Estate Investment Fund, a Blackstone-sponsored closed-end real estate fund, has finalisedthe sale of the trophy asset located in via Montebello, 18, Milan to a club deal of institutional investors and UHNWI coordinated by Mediobanca.
Kryalos SGR, a regulated investment management company, acted on behalf of the Arete Alternative Real Estate Investment Fund in connection with the sale.
Kryalos SGR will continue to manage the asset through the newly established Alternative Real Estate Fund Milan Trophy RE Fund 4 – 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.
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.
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.
Built in 1963 and entirely leased to one of the major Italian banking institutions, 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.
These certifications made it possible to finance the operation through Green Loan, a credit market instrument issued for the purpose of financing a “green” project, having a positive impact on the environment and compliant with the Green Core Components required by the Green Loan Principles.
The lending banks are BNP Paribas and Intesa San Paolo, both bookrunners of the loan, together with BPER Banca, who acted as Mandated Lead Arranger. The loan provides that the SGR, as the Fund’s management company, constantly monitors the performance of the property in relation to environmental impact and compliance with green principles aspects, and also provides the banks with a periodically updated Green Report. BNP Paribas also acted with the role of Green Loan Coordinator.
“The finalization of this transaction – said Paolo Bottelli, Chief Executive Officer of Kryalos SGR – is particularly important for us because not only does confirm and strengthen the partnership with Mediobanca, but it represents a sector benchmark in relation to the green financing which is an excellent tool to support our sustainability objectives and, more generally, a decisive support to promote and facilitate the transition to a greener economic model”.
“For Mediobanca, this is the fourth real estate club deal born from the collaboration between Private Banking and Corporate & Investment Banking – comments Dino Gioseffi, Mediobanca’s Coverage Larg Corp & Head of Real Estate. In the past two years we have been able to generate value transactions, characterized by iconic properties with solid and quality lessors, structuring and following the entire acquisition process according to market best practices”.
“The success of this new operation confirms the validity of our Private Investment Bank model that is highly integrated within the Group – adds Angelo Viganò, Head of Mediobanca Private Banking. We have allowed our clients to access a unique investment opportunity in a sector, such as that of real estate, which is particularly attractive especially in this inflationary phase”.
The sales process was coordinated by the advisors Colliers and Eastdil Secured on behalf of the seller who also made use of the collaboration of Linklaters for legal and tax aspects and the PwC Real Estate team for technical assistance. Kryalos SGR was also assisted by Studio Di Tanno & Associati in relation to regulatory and corporate aspects.
The purchasing party was supported by Dentons Europe Studio Legale Tributario for the legal and tax aspects and by the YARD REAAS Group for technical assistance.
Kryalos SGR, active since 2005, is one of the primary players in the Italian real estate market. With € 11.2 billion of properties under management and a team of 105 professionals, Kryalos SGR offers fund management, credit management, transaction, advisory and development services and is a partner of Italian and international leaders. More information on www.kryalossgr.com.
Mediobanca is a listed banking group that offers specialized banking services. Leader in Italy in investment banking, and with a significant presence throughout Europe, the Group is today one of the top Italian players in consumer credit and in offering wealth management services for high-end customers. Founded in Italy in 1946, Mediobanca has always combined tradition and innovation by offering its customers specialized, innovative and customized products. A consolidated reputation based on professionalism and discretion, combined with a high financial strength, make Mediobanca the ideal partner for corporate and private clients with ambitions for growth in Italy and Europe.