19 December, Milano Finanza
Retail real estate in Milan is going through a great period, as confirmed by the interest of several international investors competing for the spot in the city, especially in Quadrilatero. Like Trophaeum Asset Management which acquired in Via Sant’Andrea 8 the former Paciotti boutique with annexed showroom and the Chiara Boni store, along with a historical building in Via Mascagni 6. Trophaeum is one of the biggest European investors in luxury retail. With headquarter in London, the company is well known for its connections with the fashion and luxury world. The company relaunched Albemarle street in London, a parallel of Bond street, where Trophaeum owns most of the assets. Ceo Matt Farrell explained to Milano Finanza his projects on Milan as well as the official launch of Trophaeum Asset Partners with the objective of investing 10 billion euro in Europe in the future.
Have you signed new deals for Milan?
We truly believe in this city and in the appeal of Quadrilatero. We plan to invest here one billion euro in the next five years. In Via Sant’Andrea, we bought the former Cesare Paciotti boutique featuring four windows on the street and a 75 Sq m surface plus a warehouse for the same space. In addition, we also acquired its former showroom for a 450 Sq m surface, as well as the Chiara Boni store just beside. We recently bought a historical building in Via Mascagni 6. We’re currently evaluating how to convert it to enhance the appeal of the area.
What are the next steps?
We want to replicate in Milan what we did in London with Albemarle street, which has become a fashion and luxury destination. But implementing a project like that will be more complicated in Italy. For instance, Via Spiga is suffering and would need a relaunch. If we could buy 20 shops in bulk, we would be able to implement a significant development of the area.
Besides Via Spiga, what are the opportunities in Quadrilatero?
Via Sant’Andrea is the most elegant and exclusive street in Quadrilatero. It’s not by chance that the Chanel and Giambattista Valli boutiques are here. On the other hand, it hasn’t the same traffic and notoriety of Montenapoleone which ranks fourth or fifth every year in the “Main streets across the world” report by Cushman & Wakefield together with Champs Elysees in Paris.
Which rates are your talking about?
For Via Montenapoleone, commercial spaces generally cost above 200 thousand euro/Sqm, while rents are up to 15 thousand euro/Sq m/year, also considering the key money. In the other streets of Quadrilatero, due to the minor transactions, it’s hard to give an estimate.
Are you going to open to third-party investors?
We want to close some other important deals, even for 300 million per transaction. Some institutions asked to participate. For this reason, in January we’ll launch Trophaeum Asset Partners, a platform which will gather investments from institutions, sovereign and private funds, including family offices, especially Italian ones. Jared Hart will head the company. He comes from Thor Equities Europe, for which he carried out an acquisition in Via Spiga 26 concerning the former Dolce & Gabbana boutique.
Source: Milano Finanza
Translator: Cristina Ambrosi