Alantra subscribes to a Green Bond for the refinancing and refurbishment of an office building in Milan’s Porta Romana district

Date 1 March 2023

Type Alternative Asset Management

  • Alantra Private Debt continues to expand its international activity, through the subscription of a bond financing for an office building refurbishment project backed by an Italian multi-family office

Milan – Alantra, the global independent asset management and investment banking firm, is pleased to announce the subscription of a Green Bond for the refinancing and refurbishment of a 10,000 sqm office building in Milan, Italy, through its Real Estate debt fund.

The office building, currently vacant and owned by Sunshine Group, an Italian multi-family office with strong track-record in value-add real estate investments, will be re-developed under the guidance of the experienced local asset and development manager Skymac Company.

The asset is strategically located in the Porta Romana district, in the Southeastern quadrant of Milan’s semi-center. The area is undergoing one of the most prominent urban regeneration processes in the country, anchored around the former Porta Romana railway yard, which will be hosting the Olympic village for the 2026 Milano-Cortina winter Olympics. Several other major re-development projects are transforming the formerly industrial area into an innovative business district, which is expected to become a major office hub for the city in the coming years.

The office refurbishment project has been developed by the prominent local architect Giuseppe Tortato and entails the modernization of the external façades and a redistribution of the internal spaces, aimed at creating a highly energy-efficient building with Grade A sustainability ratings and LEED Gold qualifications.

Cristina Reinaudo, Founding Partner of Skymac Company, said: “We are delighted to be partnering with Alantra and Sunshine Group for this project, which will result in an iconic, Grade A building in the heart of the Porta Romana district. We believe the asset is perfectly located in one of the most attractive micro-locations in Milan and Giuseppe Tortato’s project will create a best-in-class and highly recognizable office product.”

Financing needs for the project have been structured by Alantra’s Real Estate debt fund, as a sole subscriber of a Bond issued by the project holding company set-up by Sunshine Group. Alantra’s Real Estate debt fund is a European-focused debt investment vehicle which already executed transactions in Spain, France, and Portugal across several real estate sub sectors, including logistics, hotels, offices, student accommodation, and self-storage. Following the financing of the acquisition of HolwegWeber by private equity fund Ambienta, this transaction marks the second investment out of the Italian office by Alantra’s Private Debt team. In Italy, Alantra employs over 40 professionals across its Investment Banking, Credit Portfolio, Alternative Asset Management, and Private Capital businesses.

Alberto Pierotti, Managing Director leading Alantra Private Debt’s activity in Italy, commented: “We are very pleased to support Sunshine Group and Skymac Company in such an exciting and sustainable project in one of the fastest-growing areas of the city of Milan. The subscription of the Green Bond issuance showcases our investment capabilities in Italy and commitment to continue expanding our financing activities in the country across both our corporate and real estate debt strategies.”

Gattai, Minoli and Partners acted as legal advisors to Sunshine Group in the transaction.