€247m club-deal investment in Milan trophy RE asset

Club-deal investment in RE trophy asset in Piazzq Cordusio, in the hearth of Milan, with primary tenants such as JP Morgan, Starbucks, Natwest and Kryalos SGR.

On November 27th 2020 Mediobanca, who acts on behalf of a club-deal of professional investors promoted by Mediobanca Private Banking, submitted a binding offer for the RE asset located in via Cordusio 1-2/via Armorari 14 from Kryalos SGR, for a total consideration of c.€247m.

Cordusio is an iconic 13,800 sqm building located in the heart of Milan, in the Cordusio CBD. The Asset, completely refurbished in 2015-2018, hosts the headquarters of JP Morgan, the Starbucks Reserve Roastery, flagship store of the coffee shop chain, as well as Natwest and Kryalos SGR offices.

The investment will be completed through a newly set-up fund subscribed by the professional investors. Fund management will be entrusted to Kryalos SGR (“Kryalos”) in the light of the company’s outstanding track record and good knowledge of the Asset.

Kryalos is an independent private fund manager, active since 2006. It currently has 45 funds under management with € 7.1bn of AuM. Majority shareholder (63.5%) is the CEO, Mr. Paolo Bottelli. After years of close collaboration in Italy, in May 2019, Blackstone became shareholder of the company with a 35% stake.

After Santa Margherita 12 and Turati 12 this transaction represents the third club-deal in an exclusive income-producing asset in the Italian Real Estate arena. It will allow our Private Banking Clients to target an average dividend yield of c.3.2% in a macroeconomic scenario of persistently low interest rates by investing in normally difficult to access Trophy Assets.

This deal further proves Mediobanca’s leadership in originating, structuring and executing Real Estate transactions, leveraging on the successful collaboration between the Corporate Finance and Private Banking divisions, and also helps strengthening Mediobanca’s relationship with Kryalos.