ING Real Estate Finance has provided a €20 million loan to Italian REIT Coima RES to finance the purchase of prime offices in Milan.
ING has provided a five-year loan to fund the acquisition of two separate grade A office buildings on the Via Privata Deruta 19 in Milan. The loan was written to a vehicle fully-owned by Coima RES.
The buildings were bought by Coima RES for €46 million, implying a loan-to-value ratio of 43 percent. The REIT bought the building from a vehicle owned by Warburg – HIH Invest Real Estate GmbH, a German real estate fund for institutional investors.
The two properties have a combined area of 13,650 square metres. The offices are leased to BNL, the Italian arm of France bank BNP Paribas Group. They generate €3.5 million in gross annual rent.
Coima RES debuted on the Milan stock exchange in May 2016, becoming the first real estate company IPO in Italy since 2006. The firm raised €215 million from European and US institutional investors. The REIT had an initial portfolio of 96 Deutsche Bank retail bank branches located in Italy, plus three office buildings within the Vodafone Village complex in Milan, the telecommunications company’s Italian headquarters.
“Including the acquisition of the building in Via Deruta in Milan with an EPRA net initial yield of 6.8 percent, in just eight months Coima RES has been able to invest in a quality real estate portfolio of more than €600 million with a higher yield than expected and a risk profile strictly under control,” said Manfredi Catella, CEO of Coima RES.