milan 3

COIMA RES S.p.A. SIIQ (“COIMA RES”) – an Italian publicly listed property company specialised in investing and managing commercial properties in Italy – announced that  it has finalised the agreement for the acquisition from Immobiliare Deruta 2005 S.a.s., wholly-owned by Warburg – HIH Invest Real Estate GmbH, a German Real Estate Fund for institutional investors, of a property consisting of two buildings in Milan, Via Privata Deruta no.19 (the “Property”). COIMA RES succeded in building a portfolio of quality assets of 600 million euros in only 8 months.

The purchase price amounted to Euro 46 million plus taxes.

The Property comprises two separate buildings – the combined net surface area of which is approximately 13,650 square meters – leased to the BNL – BNP Paribas Group. The lease term include 6 years plus 6 years with a 5 years walt according to first term of 31 December 2021. The two Grade “A” buildings serve as office space. They generate 3,525 million euros in gross annual rent, with a 7.5% gross yield based on the purchase price and an EPRA net initial yield of 6.8%. COIMA RES has already prepared with the architectural firm Park a possible project of building upgrades that will allow to increase occupancy of the real estate complex and improving energy performance in order to be able to guarantee the flexibility needed to the benefit of the tenant.

The property is in North East Milan, well connected to public transportation as well as the highway network. Specifically, the area is easily accessible by the adjacent subway (the MM2 Udine station; only 6 subway stations from the new BNP Paribas Group headquarter in Porta Nuova developed and managed by COIMA SGR), rail (Lambrate railway station: 0.6 km; Milan Central Station: 2.7 km), and highway (East bypass road: 1.2 km), and is just 10 minutes away from the Linate airport. Approximately 900 employees of the BNL – BNP Paribas Group work at the Deruta Property. COIMA RES financed the acquisition through a 20 million euros mortgage loan from ING with a term of 5 years and a spread of 160bps.

Following the acquisition of the Deruta property, the company’s leverage is 45%, in line with the target (current LTV: 35%).

Source: COMA RES