Coima buys Milan hotel for €23 million

Coima has bought the HD8 Hotel Milano from Covivio for €23 million.

The transaction was conducted through the Coima Core Fund II, which was set up in 2012 with an investment strategy focused on the acquisition and management of properties located in major Italian cities, particularly Milan.

The fund's portfolio includes direct investments for a total of 8 properties for approximately 30,000 sqm as well as 4 indirect investments (in other funds and real estate companies).

The transaction was also concluded thanks to the new loan of approximately €33 million taken out on the Core II fund with BPER Banca.

The four-star hotel has 79 rooms and a total area of approximately 3,000 square metres on 11 floors, and includes two retail units on the ground floor. The property  is currently leased under a contract that will end in 2041.

The acquisition was supported by Simmons & Simmons as legal consuel, by Alma Led as fiscal advisor and by Savills' Hospitality team as commercial advisor. The financing of the transaction was secured by BPER Banca with the support of GTA and Osborne Clark for the legal part

What they said

Gabriele Bonfiglioli, chief investment officer, Coima, said: "The acquisition of this building is consistent with the investment strategy of our Core II fund, which aims to focus on quality buildings in central and well-connected locations with attractive returns in a market environment that is beginning to offer attractive opportunities. HD8 Hotel Milano is a LEED Gold-certified building, with leases in excess of 15 years and able to respond to the evolving demand in the hospitality sector, which is seeing a continuous increase in tourists and business travellers looking for accommodation in boutique hotels well positioned in relation to the city centre."

Alexei Dal Pastro, Covivio's CEO Italy, said: “This transaction completes the process of enhancing the value of the asset, which has already undergone a major redevelopment that included the transformation of the original office use into accommodation, ensuring significant value creation for our shareholders.”