Kervis Fund Sells Milan Office Property

Kervis sgr, through its GO Italia III Fund, has successfully exited a prime Milanese office property located at Via Ettore Romagnoli 6. The asset, which has served as the Italian headquarters for Lego Italia since 2022, was sold to a private investor. This transaction marks a strategic divestment for the fund, which is fully backed by BentallGreenOak (BGO).

The Milan office market continues to demonstrate resilience, attracting significant private capital. Properties in well-established business districts, particularly those with strong tenant covenants like Lego, remain highly sought after. This sale underscores the ongoing demand for quality commercial real estate in Italy's economic hub, reflecting a broader trend of institutional investors seeking to optimize their portfolios and capitalize on current market conditions.

Originally acquired by the GO Italia III Fund in 2018, the property was managed by Dea Capital Real Estate sgr at the time of its acquisition. The initial transaction saw Polis sgr as the seller, with the deal valued at approximately €27 million. Kervis initially acted as an operational advisor for the portfolio's assets before taking over full management responsibilities, highlighting a strategic evolution in asset management within the GO Italia series.

The involvement of Dils as the advisor for this sale further emphasizes the competitive nature of the Italian real estate advisory sector. Their expertise in navigating complex transactions facilitated the smooth transfer of ownership. The GO Italia III Fund, under Kervis's stewardship, has focused on acquiring and managing income-generating assets, aiming to deliver attractive returns to its investors, primarily BentallGreenOak.

This divestment aligns with typical fund lifecycle strategies, where assets are held for a defined period to maximize value before being sold. The Milan office sector, despite global economic fluctuations, has shown robust performance, driven by a steady demand for modern, well-located workspaces. The presence of a globally recognized brand like Lego Italia as the sole tenant provides a strong rental income stream and reduces vacancy risk, making the asset particularly appealing to private buyers seeking stable, long-term investments.

The transaction highlights the continued appetite for well-positioned commercial real estate in major European cities. As Kervis sgr and its partners like BentallGreenOak continue to manage their portfolios, such strategic exits are crucial for realizing investment gains and redeploying capital into new opportunities. The Milan market, with its dynamic business environment and infrastructure development, remains a key focus for both domestic and international real estate investors.