Allianz Real Estate, on behalf of several Allianz group companies, has acquired a prime office asset in the central business district of Rome for circa EUR200 million from Omega Fund, a closed-end real estate fund managed by DeA Capital Real Estate SGR. The deal is expected to close this summer and follows Allianz’s recent acquisition of an office in Milan as it further expands its footprint in the Italian market.
Arte 25 is a multi-tenant office complex comprised of three separate buildings located in the Esposizione Universale Roma (EUR) area of the Italian capital. Originally built in the 1960s, it has been completely refurbished and is one of only two LEED Platinum certified assets in Rome.
Arranged over 12 floors, it has 30,828 sqm in Gross Lettable Area and is almost fully let to a prime and diversified tenancy base, generating stable and long-term cash-flows.
The EUR has become one of the most important financial and business districts of Rome. Firms with a major presence there include Microsoft, P&G, ENI and Poste Italiane. Initially laid out in the 1930s for the Universal expo, the EUR is also home to monuments such as the Palazzo della Civiltà Italiana and institutions including the Museum of Roman Civilization.
At the end of May, Allianz Real Estate acquired a prime office asset in central Milan in a sale-and-leaseback agreement with Crédit Agricole Italia for EUR140 million. The firm is focused on further building its Italian portfolio through the acquisition of prime assets in Milan and Rome alongside out-of-town logistics facilities and select investments in alternative asset classes.
Alongside growing the portfolio in Italy through acquisitions, Allianz Real Estate’s on the ground asset management team have managed a number of high profile redevelopments in recent years.
In Milan, the firm repositioned two of its historic headquarters: Corso Italia 23, a 40,000 sqm architectural complex and the redevelopment of a new Radisson Collection property, Santa Sofia Milan, both set to be completed in 2022. In Rome, Allianz Real Estate redeveloped Palazzo Marignoli (Piazza San Silvestro), a prime late 18th century building, while in Trieste, it redeveloped a 20th century building in Piazza della Repubblica into a Hilton property which was formally inaugurated 14 January. Each of the repositioning programmes will transform the assets to meet the highest standards in terms of innovation, sustainability and tenant-use.
“This transaction confirms our interest on prime office assets in the Italian Market. It represents a rare opportunity to acquire what we see as the very best office asset in Rome. The Italian capital is suffering from a shortage of high quality and modern spaces assets, especially those with the highest environmental certifications. As such, Arte 25 truly stands out in the market,” said Donato Saponara, Head of Transactions for West Europe & Country Head of Italy, Allianz Real Estate. “Looking forward we expect the EUR to continue to attract quality domestic and international tenants over the long term and we are well positioned to capitalise on that demand.”
“We have developed excellent momentum in the Italian market and continue to focus on the very highest quality redevelopments and acquisitions to deliver exceptional outcomes for all stakeholders. Innovation, sustainability and important tenant-use aspects are key to our approach as we grow our presence throughout gateway cities in Europe,” said Alexander Gebauer, CEO for West Europe, Allianz Real Estate.