Ardian Real Estate, the Paris-based real estate company, has entered the Italian market with the purchase of six office assets spread across Italy for €300 million.
The deal was made via the firm’s Ardian Real Estate Europe Fund (AREEF) and the seller was Prelios, the Milan-based real estate investment manager, which sold the assets from its Cloe fund. The 2004-vintage vehicle specializes in office assets located in major Italian cities.
Two of the six assets are located in Milan, in Corso Italia, Via Washington and Strada Palazzo A Assago; two are located in Rome, in Via Colombo and Via V. Veneto; while a much smaller sixth property is located in Bari. The six properties comprise a combined total of 915,000 square feet.
“Italy offers a great opportunity for experienced, local real estate managers. Milan and Rome are two of Europe’s very interesting real estate investment locations,” said Rodolfo Petrosino, managing director, Ardian, which has an office in Milan
“We knew both these assets and the seller very well, so we were able to seize the opportunity very quickly. We see a lot of potential for value creation with these office spaces and we look forward to starting work,” Petrosino added.
The deal, Ardian said, was in line with it investment strategy, which focuses on major cities in the Eurozone’s three largest economies – Italy, France and Germany.
“These office complexes perfectly fit in with our investment strategy: to target significant commercial property assets and seek to significantly enhance rental income through active asset management,” said Bertrand Julien-Laferrière, head of Ardian,
“This managed approach provides an outstanding opportunity in our target markets. It requires talent, experience and a strong network, but we believe that in doing so we will achieve the dual positive effect of both increasing rents and lifting capital values,” Julien-Laferrière added.
Ardian did not comment on pricing, however Prelios reported on its website yesterday that the deal concluded for €300 million. Significantly less than in December, when Italian real estate media reports suggested the portfolio would be sold to Ardian for around €360 million.
The French real estate firm was most recently in the news in November when it acquired Wappenhalle, the office and business park complex in Munich, for an undisclosed price.