In 2017, we acquired two assets located in the Quadrilatero della Moda, the most exclusive area of Milan and one of the most prestigious fashion districts in the world
Via Bagutta comprises 2,912 sqm of Gross Building Area (“GBA”) and 137 sqm of courtyard. Acquired 100% vacant, the property had the potential to be immediately converted into a trophy retail headquarters or into a retail mansion for one or more global luxury-fashion tenants thanks to its unique location in one of the top fashion districts in the world. Construction of the property is to a high quality and specification and it was extensively refurbished in 2003
Via Bigli comprises 6,559 sqm of GBA and 35 parking spaces. The basement, ground, first, and second floors are designated as retail use and the third to fifth floors are residential. Upon acquisition, the asset had a total passing rent of €1.1 million with a total vacancy of circa 77%
Structured as a tri-party agreement between Invel, the bank and the distressed borrower: the credit was acquired by Invel from the bank and, simultaneously, a debt-to-asset swap took place between Invel and the borrower under the Italian bankruptcy law Art. 67 restructuring plan. This provided Invel with an attractive entry price for trophy assets whilst securing ownership of the assets day one; and
The transaction was initially fully equity financed for €127 million. Invel raised debt financing in July 2018 for €81.8 million (plus a CAPEX and OPEX facility) enabling the return of €74 million of equity 58% of total equity to the investors.
Date of Project