M&G Real Estate acquires €85m logistics assets in Milan

M&G Real Estate has purchased a prime logistics portfolio in Greater Milan, Italy, from Principal Asset Management for €85 mln.

Logistics

The acquisition, made on behalf of the M&G European Property Fund, consists of three fully leased assets in Vignate, Biandrate, and Rho, totalling over 110,500 m2. 
These properties are strategically located in Italy's northern distribution corridors with excellent connectivity and low vacancy rates. 
M&G plans to significantly upgrade the portfolio's environmental performance over the next decade. 
Leased to established national and international logistics providers, the assets offer a resilient income stream with strong potential for rental growth and long-term value.
Simon Ellis, fund manager of the M&G European Property Fund, commented: “This acquisition reflects our continued conviction in the logistics sector across Europe, where structural demand drivers remain strong. By investing further in these assets to improve their quality, we aim to deliver long-term value and performance for our clients, while further diversifying the Fund’s portfolio.”
Gabriele Inglese, director Asset Management, M&G Real Estate Italy, added: “Greater Milan is Italy’s leading logistics hub, and this portfolio allows us to deepen our presence in a market characterised by strong occupier demand and limited supply. This investment underlines our long-term commitment to the Italian market, as well as our focus on delivering resilient, high-quality opportunities for our investors.”
The acquisition was completed through a SICAF (Società di Investimento a Capitale Fisso) vehicle managed by DeA Capital Real Estate. Colliers acted as the broker for the transaction.