Cromwell European REIT sells Piazza Affari 2 office building in Italy
Real estate investor and fund manager Cromwell Property Group (Cromwell) has completed the sale of the Piazza Affari 2 office building in Milan on behalf of Cromwell European REIT (CEREIT).
This transaction marks the first major step in CEREIT’s previously stated strategy to divest non-core and non-strategic assets over the next 2-3 years to recycle into CEREIT’s redevelopment and asset enhancement programme. Executing this landmark Milan CBD office divestment at an opportune time is further testament to the execution skills and strength of Cromwell’s team in Europe.
Built in the 1930s and partially refurbished in 2017, Affari is an office building located in the heart of Milan’s CBD with 7,787 sq m of net lettable area, eight floors above ground and two basement levels. It currently holds a BREEAM “Very Good” rating certificate.
Commenting on the sale, Lorenzo Caroleo, Head of Italy at Cromwell Property Group, said: “The strong buyer interest that we received for Affari 2 highlights the level of demand in Italy’s major cities for very well-located Grade A office assets.
“Buildings with good ESG credentials and high BREEAM / LEED certifications are highly sought after by corporate tenants in key cities like Milan, where Grade A vacancies are currently under 3%, representing an all-time low.
“We are confident that we will be able to take advantage of this trend through CEREIT’s first such redevelopment, the 10,000 sq m Nervesa 21 office redevelopment in Milan which is targeting LEED platinum status and is due for completion by the end of 2023.”