Inovalis’ opportunistic approach to investment comes through in Italy

Capitalizing on its experience in different market conditions and drawing on its expertise in multiple asset classes and across real estate strategies, Inovalis Group continues to successfully identify unique investment opportunities in Europe with the aim to create long-term value to its partners.

The next quarters should continue to provide a good entry point for real estate investments as higher yields will selectively generate attractive income and capital growth opportunities over the next 5 years. Spreads versus bonds remain relatively tight, and higher for longer is driving re-pricing, particularly for lower yielding markets/assets. Although this may present challenges for investors, we believe it will provide very attractive risk adjusted return opportunities for specialized capital with a multi-year horizon. Real Estate players with the right operational resources and diversified avenues of capital access will likely continue to be well positioned to transact more aggressively in the coming quarters.

“We are delighted to announce the successful closing of a transaction in Italy with one of our long-standing Middle Eastern partners and one of Europe’s largest funds. Despite the prevailing high levels of uncertainty, the current challenging market conditions are beginning to present compelling investment opportunities for the long(er) term.
This transaction underscores the proficiency of our teams in identifying top-tier off-market assets that align with the investment criteria of our partners, even within a demanding real estate cycle. Having accumulated 25 years of experience in the industry, Inovalis Group has sharpened its ability to adeptly navigate through diverse market cycles.
Looking ahead, we remain committed to closely monitoring our key markets in Europe and meticulously evaluating selective opportunities priced at valuations that reflect the environment dynamics.”, said Khalil HANKACH, CEO of Inovalis.

On November 3rd, 2023, Inovalis and its partner have acquired the building from Ardian, a leading private investment company and Prelios, one of the leading Italian asset managers. Inovalis led the acquisition and sourced the financing with CBRE as debt advisor and the Forward Fund, an Italian credit AIF managed by Gardant Investor SGR S.p.A as lender. eRE – element Real Estate acted as commercial advisor and Lawal as legal advisor.

Our teams have managed in the current debt environment to secure a leverage positive position through their extensive and diversified network. High interest rates, combined with higher equity returns sought by investors, have resulted in a substantially higher cost of capital for real estate investors. However, unlike 2008–09 when capital access was effectively non-existent, capital remains available for well established players looking at quality assets with strong capital structures and sustainable cash flow.

The property is strategically located in the Milanofiori business park in the South of Milan, one of the most consolidated and resilient business parks of the city. It offers an ideal business location for companies with a mix of office, hotel, congress, restaurant, retail, leisure, amenities, and park areas and is well-connected to the centre with a nearby metro line and to Linate international airport. The area attracts many international companies including Segro, Aon, DHL, ManPower, InfraCom, Ferrero, and SoftwareOne.

The property was constructed in the 1980’s and completely refurbished in 2018-2022, reinforcing its position as the best building in its micro-market with modern and flexible space offering an inclusive working environment with state-of-the-art fit-out. It comprises approximately 18,000 square metres of lettable space and 125 parking spaces. The office is fully let to blue-chip anchored tenants including Sopra Steria, TDK, Goodyear and Copernico (IWG – Regus).