Catella Real Estate AG (CREAG) has acquired the eight-storey, underground car park Largo Corsia dei Servi with 332 parking spaces in the historic centre of Milan.
Financial details were not disclosed.
The long-term tenant is Apcoa, one of the largest private providers of parking spaces in Europe. The asset was acquired alongside investment partner Orange Investment Managers.
Said Axel Bertram, part of the portfolio management team at Catella Parken Europa: 'The location in the historic centre of Milan within a short distance to historic buildings, museums, galleries and shopping facilities makes the Largo Corsia dei Servi parking garage particularly attractive.
'Through the upcoming modernisation work, the car park will be up to the latest technical standards together, thus ensuring a stable cash flow for the fund's investors in the long term. Car parks like this will play an increasingly important role in urban mobility in the future, due to a focus on reducing on-street parking and channeling car mobility in cities, and are particularly suitable for investors who are looking for an "infrastructure-related" investment with a balanced risk-return profile in the current economic situation.'
The deal follows the recent acquistion of two underground car parks at Avenue Kleber and Marché Saint Germain in the heart of Paris for Catella Parken Europa.
Frenky Prins, investment manager at Orange Investment Managers, said: 'Like the two acquisitions in Paris, this parking lot will play an important role in the urban mobility of Milan.
'After our first parking lot investment on the edge of the historic centre of Milan, the Largo Corsia dei Servi car park serves the area closer to the center of Milan and forms a good extension to our portfolio.'
The car park Largo Corsia dei Servi is located in the historic centre of Milan, right between the main shopping street Corso Vittorio Emanuele II and the office and shopping street Corso Europa.
The parking garage was built in 1973 and consists of eight underground floors with a total of 332 parking spaces.