24 July 2008 - MGPA, the global private equity real estate investment advisory company, has agreed to acquire on completion a Grade A office development in the semi centre of Milan, in Via Scarsellini, for €53 million.

MGPA is acquiring this property asset on behalf of MGPA Europe Fund III, part of the larger MGPA Fund III which closed in June 2008 with commitments of US$5.2 billion. MGPA Europe Fund III raised US$1.3 billion (€841.5 million) and has already made an investment in the retail sector in Greece and the residential sector in Poland. 

The building has a strong location opposite the future metro stop of Affori Centro on the M3 yellow line. The building will consist of eleven floors and comprises 17,129 square metres of NLA, with provision for external and underground parking. It is being built to the highest technical specifications with raised floors, suspended ceilings, a clear floor to ceiling height of 2.7 metres and full air conditioning. The building will comply with strict EU environmental directives. It is expected that it will be ready for occupation by June 2010.

MGPA’s Chief Executive for Europe, Alex Jeffrey, said, “We are very positive about the office sector in Milan, which has much lower Grade A provision than comparable markets. This was demonstrated by our successful acquisition and recent disposal of the Sony building in Cinisello Balsamo.”

MGPA’s investment representative for Italy, Sebastiano d’Avanzo, said, “There is a strong demand for international Grade A office space in Milan. Offices of Grade A standard located near metro stations have consistently performed well in the Milan market. The success of the Maciachini Centre nearby has established the area around Via Scarsellini as the next obvious area for office development.”

This acquisition is financed by Aareal Bank. MGPA was advised by Cushman and Wakefield.