Allianz Real Estate has acquired a prime office asset in the central business district of Milan for EUR140 million in a sale-and-leaseback deal with Crédit Agricole Italia. The acquisition has been made on behalf of several Allianz group insurance companies.
The asset, composed of three interconnected buildings facing Via Armorari and Via Cantù, is spread over six floors above-ground plus two basements with a gross building area of c. 10,806 sqm. Built in the early 20th century and fully refurbished across 2014-2019, the building is very well positioned in the heart of the city’s financial district. The façade is characterised by a large gallery entrance on the ground floor.
Allianz Real Estate has acquired the property through an existing fund structure managed by Kryalos SGR. The Via Armorari building will remain one of the most important headquarters of Crédit Agricole Italia, following the signing of a nine-year lease agreement for the entire asset. The agreement, secures a long-term cash flow for the underlying Allianz insurance companies.
Italy remains a core growth market for Allianz Real Estate. The firm is targeting to continue to grow its Italian portfolio in equity investments over the next three years. The focus will to be prime assets offering long term value, particularly through office assets in Milan and Rome alongside out-of-town logistics facilities and select investments in alternative asset classes.
Across 2019, the firm’s Italian deals included the acquisition for over EUR400 million in office and logistic alongside a number of redevelopments in Milan, Rome and Trieste for over 100.000sqm.
“Despite the current environment, the acquisition of this prime office asset in Milan underscores our strong belief in the long-term strength of the market. It fits well within Allianz Real Estate’s investment strategy, adding a very high quality asset to our portfolio that provides long-term, stable cash flows underpinned by a prime tenant,” said Donato Saponara, Head of Transactions for West Europe & Country Head of Italy, Allianz Real Estate.
“On a broader basis, we remain very active in Italy, particularly in the office sector in Milan and Rome, and are positive on the market on a select basis. The combination of our local team of experts and Allianz Real Estate’s global platform places us at an advantage as we are able to position our assets at the best international standards,” said Alexander Gebauer, CEO for West Europe, Allianz Real Estate.
