Ardian, a world-leading private investment house, and Prelios SGR, one of Italy's leading real estate and asset management companies, announced the sale of an office building located in via Melzi D'Eril 34 in Milan to BNP Paribas REIM, one of the most important players in the European real estate market.
The building is located in one of the most exclusive areas of the city, between the Porta Nuova and CityLife districts, a few steps from Parco Sempione and the Arco della Pace, in a dynamic, international district. The proximity to several underground lines and to the Cadorna railway station, from which there is a connection to Malpensa airport, mean the asset is well-served by public transport.
The redevelopment project was conducted by Asti Architetti. It redesigned the early twentieth century building into a modern site, creating an urban campus of approximately 5,700 square metres of Gross Leasable Area (GLA). The asset now offers modern and flexible office space, including 300 square metres of panoramic terraces and another 300 square metres of rooftop with a privileged 360-degree view of the Milan skyline. There is also an exclusive 800 square metres garden that is unique for the centre of Milan.
The building will become the new headquarters of a leading IT consulting company and a notable co-working services company.
ESG was integral to the redevelopment project, in line with Ardian's focus on environmental sustainability and tenants' well-being. The building is one of a few to be aligned with the ambitious objectives set by the Paris Agreement in terms of CO2 emissions, aimed at limiting average global warming to well below 2 degrees Celsius.
As a result, the building has been certified as LEED Platinum, BREEAM Very Good and Well Silver, and is WiredScore compliant. These sustainability credentials have been achieved through the application of advanced technologies, including an Internet of Things (IoT) infrastructure that, combined with artificial intelligence, is able to monitor and minimize energy consumption. This automated and innovative management technology also ensures a unique and user-friendly campus experience.
Dils acted as commercial advisor for the transaction. Ardian and Prelios SGR were supported by Linklaters as legal advisor.
“Melzi d'Eril's success demonstrates how the pandemic has shifted office market demand towards sustainable buildings that prioritise employee well-being. One of the main challenges that companies are experiencing is the ability to attract and retain talent. The campus, with its services, IoT infrastructure, common spaces and over 1,400 square meters of terraces and gardens, provides tenants with a unique and immersive experience in the heart of Milan. BNP has believed in this project for its resiliency thanks to its sustainability features and the low CO2 emissions that the building will produce between now and 2050, in line with the Paris Treaty ”.
● matteo minardi ● managing director, ardian real estate
“The sale of Melzi d’Eril in the context of an uncertain and volatile market highlights the strength of Ardian’s strategy to create high quality, sustainable assets, aligned with the highest international ESG standards. We will continue to focus on acquiring and transforming secondary assets into green buildings amid growing institutional investor appetite for these sites”.
● RODOLFO PETROSINO ● SENIOR MANAGING DIRECTOR, ARDIAN REAL ESTATE
“The excellent result we achieved with this operation consolidates our partnership with Ardian and confirms Prelios SGR’s leadership in value-added transactions and repositioning of historic buildings, particularly in the office sector. The Melzi d’Eril project looks to the future and to the ambitious sustainability targets that define the real estate sector, paying great attention to the environment and to the building’s historical authenticity, as well as contributing to valorising its prestigious location in a historic district in Milan. The interest shown by international tenants and investors in properties repositioned according to international best practices confirms the long-term sustainability of the Milan and Rome markets. This is also demonstrated by the recent launch of new operations by Prelios SGR in both cities.”
● patrick del bigio ● ceo, prelios sgr
 The asset was owned by a real estate investment company wholly owned by Ardian and managed by Prelios SGR.