MIPIM 2011: GIC pulls out of Milan office deal

Singapore sovereign fund GIC pulled out of a deal to buy a €200m office building in Milan from Italian fund manager Torre SGR.

Torre is 62.5% controlled by US private equity firm Fortress’s Luxembourg-based vehicle Fortezza and 37.5% by Italian bank UniCredit’s Pioneer Investment subsidiary.

According to market sources, GIC, which was starting a vehicle in Italy, dropped out of the deal owing to uncertainties about a new law regulating real estate investment funds in the country. GIC had been in exclusive talks to buy the asset since the end of last year after it was put on the market in June.

The 28,000 m2 building, designed by Renzo Piano, is in via Monte Rosa 91. Tenants include global service firm PricewaterhouseCoopers, Italy’s main financial daily Il Sole 24Ore and car dealer Aston Martin.

UniCredit mandated Cushman & Wakefield and Jones Lang LaSalle to market the asset.