Cromwell European Reit in advanced talks to sell Milan ‘trophy asset’

CROMWELL European Real Estate Investment Trust’s (Reit) manager has disclosed that it is in advanced negotiations to sell Piazza Affari 2, its office asset in Milan, Italy.

Its bourse filing announcing this comes after a real estate news site reported on Friday (Jun 9) that the asset will change hands for close to 100 million euros (S$144.7 million).

In the Reit’s annual report, the manager had described the property as a “trophy asset” in the heart of Milan’s central business district, located opposite the Milan Stock Exchange.

On Friday, the manager said no definitive agreement has been reached, and there is no certainty or assurance that any transaction would materialise from the current discussions.

But it noted that the negotiations to sell the asset is consistent with its previously stated strategy to divest non-core and non-strategic assets over the next two to three years.

The manager will make announcements when there are further material developments, it stated.

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Units of the Reit closed up 0.6 per cent at 1.59 euros on Friday.