Cromwell E-Reit’s Milan office asset ‘largely completed’
Michelle Zhu
CROMWELL European Real Estate Investment Trust’s ( Cromwell E-Reit ) Nervesa21 office redevelopment in Milan, Italy is “largely completed” with “only minor basement and garden landscape works” remaining.
“The redevelopment works are largely completed, with the premises successfully delivered to tenants pending some final minor works to be completed within Q1 2024,” said its manager on Monday (Jan 22).
Cromwell E-Reit’s manager also revealed that the asset’s new tenant-customers include fintech company Scalapay and communications advisory firm Edelmen.
They join anchor tenant Universal Music Group, which was named in the Reit’s third quarter business update in November 2023. Scalapay and Edelmen were then referred to as “other communications and tech tenants” who contributed to the estimated 70 per cent of pre-leased net lettable area.
Universal Music Group had earlier inked a pre-leasing commitment for eight floors of the property. Scalapay pre-leased another two floors and Edelmen has pre-let one, the Reit manager said.
Simon Garing, chief executive of the manager, said the remaining three floors – or 30 per cent of the space at Nervesa21 available for lease – has received “strong interest” from prospective new businesses.
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This space for lease is also “now being actively marketed” following the completion of Nervesa21’s construction activities on-site, added the manager.
“We continue to progress our plans to redevelop other existing assets, providing Cromwell E-Reit unitholders with an organic pipeline of accretive asset enhancement initiatives. As interest rates continue to stabilise, we expect sentiment to improve across European real estate markets and contribute further growth opportunities for Cromwell E-Reit,” commented Garing.
The Reit’s recently released independent property valuations as at end-December 2023 also show that the Reit is “close to stabilisation of European values in this cycle”, he said.
Units of Cromwell E-Reit ended Friday 1 euro cent or 0.7 per cent lower at 1.41 euros.
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