MGPA is investing in a Grade A office development in Milan for €53 million ($83 million) on behalf of its $1.3 billion MGPA Europe III fund – part of the larger MGPA Fund III fund that raised a total of $5.2 billion in June.
The firm said it was investing in a 17,000-square-meter development in the semi center area of Milan. The firm said in a statement the building, which will be completed to high technical specifications and comply with European Union directives, should be ready for occupation by June 2010. It is being developed in conjunction with an Italian operator.
It is not the first time MGPA has invested in Italian offices. It recently acquired and exited from the Sony building in Cinisello Balsamo. However this is the first acquisition in Italy for its latest European fund. Apart from the Italian deal, it has made an investment in the retail sector in Greece and the residential market in Poland.
Chief executive for Europe, Alex Jeffrey, said Milan’s office sector had a 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,” he added.
According to MGPA’s investment representative for Italy, Sebastiano d’Avanzo, there is strong demand for international Grade A office space in Milan.