Investcorp reaches €1.1 billion of assets acquired in Europe with acquisition of headquarters of Kering and a United Nations agency

Investcorp, a leading global alternative investment firm, announced today that its European Real Estate business towards the end of last year acquired Kering’s Italian headquarters in Milan (the “Milan Property”), for €74 million, and has recently acquired an office in Rome (“The Rome Property”), occupied by the United Nations agency the International Fund for Agricultural Development (IFAD), for €128 million.

The two acquisitions mark Investcorp’s entrance into the Italian real estate market. Since launching its European real estate business in 2017, Investcorp has invested approximately €1.1 billion in 80 properties across the UK, Germany, the Netherlands, Italy and Belgium.

The Milan Property serves as Kering’s Italian headquarters, with its importance underpinned by the lease extension signed shortly before acquisition. The multinational corporation specialises in luxury goods and is the owner of Gucci, Yves Saint Laurent and Bottega Veneta. The Milan Property is located adjacent to Gucci’s Milan headquarters that opened in 2016, a 56,000 sq. m. converted aeronautical factory home to design, showroom and manufacturing functions for the brand.\\

The Milan Property comprises 18,000 sq. meters of office space, including a canteen and café, spread across nine floors. The Milan Property was fully refurbished in 2019, with only the frame of the existing building being retained. The Milan Property was delivered with a LEED Platinum Core and Shell Development certification in January 2020, the highest possible certification established by the U.S. Green Building Council.

The Rome Property is 100% occupied under a long-term lease by IFAD, a United Nations agency dedicated to eradicating poverty and hunger in rural areas of developing countries. The Rome Property was built in 2008 to accommodate IFAD, which has been based in Rome since its formation in 1977.

The single-let, Class A office property comprises 32,200 sq. m. of gross lettable office space and 174 internal and external parking spaces. It is LEED Platinum Certified, the highest possible certification established by the U.S. Green Building Council, and one of very few buildings in Rome to receive the certification.

Commenting on the acquisition, Yusef Al Yusef, Head of Investcorp’s Private Wealth said: “We are pleased to have made our entry into the Italian real estate market. Milan and Rome continue to have a growing demand for office space, and these acquisitions are in line with our strategy of investing and growing our real estate portfolio across Europe. Going forward, we will continue to identify opportunities with the potential to drive value for our clients and grow our footprint across Europe.”

Khulood Ebrahim, Real Estate Specialist, Investcorp, added: “Italy is a market where we are beginning to see increasing investor interest, so we are excited to add these high-quality, income-generating office properties to our growing portfolio. Investcorp has a long track record of investing in Italy, and we know Kering well, having successfully acquired and subsequently sold the leading fashion brand Gucci, which is now in the Kering portfolio.”