Nervesa21 office redevelopment in Milan 70% pre-let

Real estate investor and fund manager Cromwell Property Group (ASX:CMW) (Cromwell or Group) has, on behalf of CEREIT, pre-let 70% of available space at the Nervesa21 office development in Milan, leaving only 3,000 sq m of space remaining.

Anchor tenant Universal Music Group, a world leader in music-based entertainment, pre-leased eight floors a year before completion. Scalapay, the first Italian “unicorn” and one of the biggest European BNPL (“buy now, pay later”) providers, signed a pre-lease for two floors and Edelman, an award-winning global communications consultancy firm, pre-leased one floor.

The redevelopment works are largely finished, with the premises successfully delivered to tenants pending some final minor works to be completed in January 2024.

Nervesa21 was re-configured to offer 14 modern floors, a modular flexible layout, premium amenities, two rooftop terraces and four panoramic elevators.

Developed with a strong focus on ESG, the redevelopment includes 5,300 sqm of external green garden leisure space, end-of-trip bicycle facilities and 230 parking spaces – some of which will have electric vehicle charging stations and will be powered by a combination of on-site renewable energy from solar panels and energy sourced from 100% renewable energy suppliers. Up to 50% of the façade is composed of low-carbon glass that, thanks to its integrated value chain, is expected to achieve up to 40% reduction of the embodied carbon footprint of the glass. Upon completion, the redevelopment is expected to attain LEED Platinum and WELL Gold certifications, making it one of the most advanced Grade-A offices in terms of ESG and energy efficiency, with reduced energy consumption of up to 40% compared to similar buildings.

Nervesa21 is strategically located in the Porta Romana district of Milan, south-east of Milan’s city centre. The asset is near Corso Lodi and has direct access to the A1 highway, the Linate Airport and the Central Station.

Commenting on the lettings, Michael Bohde, Head of Southern Europe at Cromwell Property Group, said: “To have pre-let 70% of the space at Nervesa21 is a fantastic endorsement of the office development’s credentials. As our new occupiers commence fit-out work, we are experiencing a strong level of interest in the remaining space from businesses attracted by the building’s ‘oasis-like’ location close to Milan’s bustling city centre.

“The successful execution of this project provides further evidence that occupiers are increasingly focused on ESG criteria when selecting an office location, seeking the best quality space with modern staff facilities, good access to public transport, parking and high energy efficiency. Office buildings with these features are in undersupply across Europe’s major cities.”

Cromwell was advised by CBRE and DILS on the lettings, the general contractors Nessi & Majocchi and the architects at DEGW / Lombardini 22.