Savills Investment Management (Savills IM) has acquired two properties in Lyon, France, and Milan, Italy, for a total of approximately €110 million for the investment mandate of a southern German pension fund.
The purchase in Milan is an off-market transaction. These are the first purchases in France and Italy for the portfolio, which has been built up on behalf of the pension fund since 2015. Previous investments have focused on Germany, with the portfolio also including a property in Luxembourg.
The property in France is a modern office building in the central business district (CBD) of Lyon. The building was completed in 2014 and consists of three interconnected parts. The rental space totals approx. 11,450 sqm and is almost completely let on a long-term basis to a well-diversified tenant mix with strong credit ratings. There are 130 parking spaces in the building’s underground car park. The property has HQE-BBC energy certification and is partially powered by its own photovoltaic panels.
Lyon’s CBD, La Part-Dieu, is the second largest business district in France after La Défense in Paris. It is home to 16 of the top 20 French companies, as well as other well-established international businesses, underlining the national and international credentials of the area.
On the Savills IM side, Wargny Katz, Gide and Savills advised on the acquisition.
The second transaction in Milan, Italy, is a mixed-use property that was fully refurbished in 2021, with retail space on the ground and basement floors and office space on the upper floors. The rental space totalling approx. 8,870 sqm is almost entirely let on a long-term basis to tenants with strong credit ratings. The property also has 65 outdoor parking spaces.
The property is located in Milan’s Semi-Centre, directly on the ring road. National and international companies interested in high-quality rental space with good sustainability characteristics have settled here. The property has a “Wired Score” certification for the digital connectivity of the property, with LEED Gold certification to follow by the end of the year.
Savills IM was advised by DLA Piper and Drees & Sommer on the acquisition.
Andreas Voelskow, Director Fund Management at Savills IM, comments: “We are delighted to have secured these two properties for our investment mandate. The acquisitions demonstrate that even in the current challenging market environment there are attractive opportunities to be taken.
“For the investor, a German pension fund, the focus is on generating stable and sustainable income. Due to the tenant mix with strong credit ratings, the modern facilities and the strategically very good locations, the properties fulfil these criteria and contribute to further diversification.”
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