COIMA RES SpA SIIQ signed a preliminary agreement to buy the Pavilion complex in Milan's Porta Nuova district for €45.0 million, excluding transfer tax and due diligence costs.
Including transfer tax and due diligence costs, the total consideration comes to €46.3 million. The diversified real estate investment trust also stands to gain a potential earn-out of as much as €5.0 million from the deal which is expected to close by 2018-end.
The Pavilion, which has a total gross surface area of about 3,000 square meters, is being sold by Italian bank UniCredit SpA, which uses the property as an exhibition center, and for hosting events and conferences. If the deal goes through, UniCredit will vacate the asset by the end of 2018, paving the way for COIMA RES to reposition the property.
Financial services companies account for about 30% of tenancy at the Pavilion and 20% of tech and telecom tenants, with the remaining space occupied by engineering, energy, consulting, pharma and fashion companies.
