Office in Milan sells for €243m

A consortium of institutional investors and ultra-high-net-worth individuals has paid €243 million ($255 million) for Montebello 18 in Milan.

The seller was Arete Alternative Real Estate Investment Fund, managed by Kryalos SGR, and underwritten by vehicles attributable to Blackstone.

The asset is in the heart of the city of Milan, totaling more than 30,000 square meters (322,920 square feet), spanning up eight stories. Built in 1963, the property has recently undergone a redevelopment that has made it a class A asset and has made it possible to obtain LEED Gold and BREEAM In-Use Very Good certifications.

The asset, entirely leased to an Italian banking institution, will be managed by the newly established Alternative Real Estate Fund Milan Trophy RE Fund 4 of Kryalos SGR, the fourth fund subscribed by an investor club deal coordinated by Mediobanca.

“This new transaction with Mediobanca confirms the investment potential of club deals in real estate an