The Italian branch of Amundi Real Estate has acquired a property in Milan for €63.5m, on behalf of the fund Nexus 1.
The property, with a total area of about 13,200 square meters, is fully leased to the international group L’Oréal and it generates a gross rental income of approximately €4.2m per year.
The transaction was supported by BonelliErede legal advisers and financed in pool by Crédit Agricole CIB, Deka Bank and UBI Banca as mandated lead arrangers and lending banks, and by Cariparma Crédit Agricole as financing bank.
This is the third investment for Nexus 1 since it was launched in 2014. Nexus 1 is a semi-open ended Italian real estate investment fund, reserved to professional investors whose investment policy is focused on the acquisition of commercial real estate properties mainly located in Milan and Rome.
The fund manager strategic investment objective is to build a portfolio composed of properties for commercial use, with high standing tenants, that is able to produce stable rental income by using financial leverage at 50%.
The fund can also rely on its current subscribed capital of €60m, which can be used to carry out new transactions. So far, the shares of the Nexus 1 are entirely held by CA Vita, Crédit Agricole Group’s insurance company operating in the Italian market.
“With this transaction, the real estate portfolio of Nexus 1 reaches almost a €200m size, thus achieving a satisfactory diversification in recurring cash flows’ sources generated by 20 different lease agreements underwritten by high standing tenants,” said Giovanni Di Corato, CEO of Amundi Real Estate Italy.