Real estate investor and fund manager Cromwell Property Group (Cromwell) is pleased to announce that it has secured - on behalf of Cromwell European REIT (CEREIT) - two occupiers for the CEREIT's light industrial and logistics asset located west of Milan, Vittuone, one of the major logistics areas in the north of Italy. The two new leases account for approx. 80% of the total 60,000 sqm lettable area available in the asset.
ABB, a global technology leader in electrification and automation, has signed a new lease for 36,000 sqm. ABB has been occupying the building since 2002 and with the new lease has confirmed the mission-critical nature of this asset.
A second new lease for 12,000 sqm has been signed by a leading global automaker and mobility provider. The space is currently under refurbishment and lease will commence in the second half of 2023 after completion of works.
The remaining vacant portion of the building (12,000 sqm) is currently marketed for lease to potential tenants, while being refurbished to meet current logistics market needs; the project includes the creation of loading docks, sectional doors for vans, new sprinkler system, new HVAC systems, new BMS and floors with bearing capacity of 5 tonnes / sqm.
As part of the Group’s ESG strategy, Cromwell carefully considers carbon emissions and energy efficiency in every refurbishment strategy: the asset will be equipped with photovoltaic panels, LED lighting, electric vehicles parking spaces and a range of other measures to modernize the building and meeting ESG expectations of both institutional landlords and international occupiers. On completion, the refurbished portions will comply to LEED Gold standards.
The asset’s location benefits from excellent motorway links, being strategically located close to the A4 exit of Arluno and the A8, A7 and A1 motorways and simultaneously well connected with the Milan ring-road.
Lorenzo Caroleo, Head of Italy for Cromwell, commented: “The quick lease-up of this asset validates our strategy and highlights our ability to modernise our buildings and create value for both our capital partners and our tenant customers.
Our local asset management team has executed the business plan few months after acquisition, thanks to their capability to find an agreement with the current occupier, free-up valuable space and transform this asset through a major refurbishment. The new project will provide sustainable and technologically advanced spaces which are in so much demand in northern Italy.”