Ardian, a world-leading private investment house, and Prelios SGR, one of Italy's leading real estate and asset management companies, announced the sale of an office building located in via Melzi D'Eril 34 in Milan to BNP Paribas REIM, one of the most important players in the European real estate market.
The building is located in one of the most exclusive areas of the city, between the Porta Nuova and CityLife districts, a few steps from Parco Sempione and the Arco della Pace, in a dynamic, international district. The proximity to several underground lines and to the Cadorna railway station, from which there is a connection to Malpensa airport, mean the asset is well-served by public transport.
The redevelopment project was conducted by Asti Architetti. It redesigned the early twentieth century building into a modern site, creating an urban campus of approximately 5,700 square metres of Gross Leasable Area (GLA). The asset now offers modern and flexible office space, including 300 square metres of panoramic terraces and another 300 square metres of rooftop with a privileged 360-degree view of the Milan skyline. There is also an exclusive 800 square metres garden that is unique for the centre of Milan.
The building will become the new headquarters of a leading IT consulting company and a notable co-working services company.
ESG was integral to the redevelopment project, in line with Ardian's focus on environmental sustainability and tenants' well-being. The building is one of a few to be aligned with the ambitious objectives set by the Paris Agreement in terms of CO2 emissions, aimed at limiting average global warming to well below 2 degrees Celsius.
As a result, the building has been certified as LEED Platinum, BREEAM Very Good and Well Silver, and is WiredScore compliant. These sustainability credentials have been achieved through the application of advanced technologies, including an Internet of Things (IoT) infrastructure that, combined with artificial intelligence, is able to monitor and minimize energy consumption. This automated and innovative management technology also ensures a unique and user-friendly campus experience.
Dils acted as commercial advisor for the transaction. Ardian and Prelios SGR were supported by Linklaters as legal advisor.
“Melzi d'Eril's success demonstrates how the pandemic has shifted office market demand towards sustainable buildings that prioritise employee well-being. One of the main challenges that companies are experiencing is the ability to attract and retain talent. The campus, with its services, IoT infrastructure, common spaces and over 1,400 square meters of terraces and gardens, provides tenants with a unique and immersive experience in the heart of Milan. BNP has believed in this project for its resiliency thanks to its sustainability features and the low CO2 emissions that the building will produce between now and 2050, in line with the Paris Treaty.” MATTEO MINARDI, MANAGING DIRECTOR, ARDIAN REAL ESTATE
“The sale of Melzi d’Eril in the context of an uncertain and volatile market highlights the strength of Ardian’s strategy to create high quality, sustainable assets, aligned with the highest international ESG standards. We will continue to focus on acquiring and transforming secondary assets into green buildings amid growing institutional investor appetite for these sites.” RODOLFO PETROSINO, SENIOR MANAGING DIRECTOR, ARDIAN REAL ESTATE
“The excellent result we achieved with this operation consolidates our partnership with Ardian and confirms Prelios SGR’s leadership in value-added transactions and repositioning of historic buildings, particularly in the office sector. The Melzi d’Eril project looks to the future and to the ambitious sustainability targets that define the real estate sector, paying great attention to the environment and to the building’s historical authenticity, as well as contributing to valorising its prestigious location in a historic district in Milan. The interest shown by international tenants and investors in properties repositioned according to international best practices confirms the long-term sustainability of the Milan and Rome markets. This is also demonstrated by the recent launch of new operations by Prelios SGR in both cities.” PATRICK DEL BIGIO, CEO, PRELIOS SGR
Ardian
Ardian is a world leading private investment house, managing or advising $141bn of assets on behalf of more than 1,300 clients globally. Our broad expertise, spanning Private Equity, Real Assets and Credit, enables us to offer a wide range of investment opportunities and respond flexibly to our clients’ differing needs. Through Ardian Customized Solutions we create bespoke portfolios that allow institutional clients to specify the precise mix of assets they require and to gain access to funds managed by leading third-party sponsors. Private Wealth Solutions offers dedicated services and access solutions for private banks, family offices and private institutional investors worldwide. Ardian is majority-owned by its employees and places great emphasis on developing its people and fostering a collaborative culture based on collective intelligence. Our 900+ employees, spread across 15 offices in Europe, the Americas and Asia, are strongly committed to the principles of Responsible Investment and are determined to make finance a force for good in society. Our goal is to deliver excellent investment performance combined with high ethical standards and social responsibility. At Ardian we invest all of ourselves in building companies that last.
PRELIOS
Prelios SGR is a company in the Prelios Group and one of Italy's largest asset managers. It is active in the promotion, creation and management of alternative real estate investment and credit funds, advisory and separate account management, for leading Italian and international institutional investors. Prelios SGR is a pioneer in the innovation of investment products, in terms of asset classes and typologies, in part through the management of one of the first externally managed SICAFs, and of the largest UTP fund in Italy and one of the largest in Europe. Prelios SGR has developed advanced standards and control systems in terms of governance, risk management and transparency, while maintaining operating flexibility. The company is also committed to promoting sustainability, as reflected in its adherence, since 2019, to the UN PRI - Principles for Responsible Investment and, since 2020, to the GRESB.