COIMA SGR has acquired the four-star HD8 Hotel Milano, in Piazza Duca d’Aosta, Milan, Italy, for €23 million.
The seller was Covivio, one of Europe’s leading real estate companies. COIMA specialises in the investment, development and management of real estate on behalf of institutional investors.
The 3,000 square metre HD8 Hotel Milano has 79 rooms on 11 floors. There are two leased retail units on the ground floor. Completely renovated in 2021, the hotel is leased under a contract that will end in 2041, with a possible extension for a further nine years. The average occupancy is more than 90%. HD8 Hotel Milano is LEED Gold certified.
The transaction was conducted through the COIMA Core Fund II, set up in 2012 with an investment strategy focused on the acquisition and management of properties located in major Italian cities, particularly Milan.
There is a portfolio rotation strategy for certified and sustainable properties. Currently, it includes direct investments for eight properties of approximately 30,000 square meters and also four indirect investments in other funds and real estate companies. The transaction was concluded using a new €33 million loan taken out on the Core II fund with BPER Banca.
Investment strategy
COIMA Chief Investment Officer Gabriele Bonfiglioli says, “The building acquisition is consistent with the investment strategy of our Core II fund, which focuses on quality buildings in central and well-connected locations with attractive returns in a market environment that is offering attractive opportunities. HD8 Hotel Milano is a LEED Gold-certified building, with leases exceeding 15 years which respond to the evolving demand in the hospitality sector, and is seeing an increase in tourists and business travellers looking for accommodation in boutique hotels well connected to the city centre.”
Covivio’s Italian Chief Executive Officer Alexei Dal Pastro says, “This transaction enhances the value of the asset, which underwent a major redevelopment that included the transformation of the original office into accommodation, ensuring significant value creation for our shareholders.”
The acquisition was supported by Simmons & Simmons as legal counsel, Alma Led as fiscal advisor and also Savills’ Hospitality team as commercial advisor. The transaction’s financing was secured by BPER Banca with the support of GTA and Osborne Clark for legal support.
