Tocqueville will benefit from the planned regeneration of the surrounding area, being situated immediately in front of the Bonnet Value-add project in which COIMA RES owns a 35.7% stake. The Bonnet Project is well on track for delivery by H1 2020 and preliminary feedback from prospective tenants is positive. London-based and award winning PLP Architecture studio is leading the development, focusing on the Bonnet high-rise building and the adjacent square which will include a retail box. PLP Architecture has designed many high-profile projects, including "The Edge" in Amsterdam (named the world's most sustainable building), 1 Page Street in London (Burberry's headquarters) and Nova Victoria in London. The Bonnet project will feature several cutting edge sustainable and innovative technologies, with implementation of Smart Building infrastructure and application of international sustainability certification such as LEED and WELL with extensive use of renewable energy sources. The project will also create a new public space in front of Tocqueville and the refurbishment of the streets connecting to Corso Como.
The Porta Nuova area (developed by the COIMA platform) has undergone a radical transformation over the last decade and it now represents one of the most successful business districts in Milan. More than 35,000 employees currently work in Porta Nuova representing a diversified, blue-chip, employer base made of Financial Services (UniCredit, BNP Paribas, AXA, HSBC, China Construction Bank, etc., representing c. 30% of employees), Tech and Telecom (Microsoft, Samsung, Amazon, Google, LinkedIn, TIM, etc. representing c. 20% of employees) as well as Engineering & Energy (Maire Tecnimont), Consulting (Accenture, KPMG), Pharma (Santen, Amgen) and Fashion (Versace, Moschino). The number of employees working in Porta Nuova is expected to grow by more than 30% by 2022 as the area consolidates further and more tenants move their HQs in the area. The combined rental and occupancy growth for Porta Nuova offices is expected to be close to 20% for the period 2018-2020 according to independent research house Green Street Advisors.
Pro-forma for the Tocqueville and Pavilion acquisitions, COIMA RES exposure to Milan increases to 76% of the portfolio and COIMA RES exposure to Porta Nuova increases to 30% of the portfolio with a surface of more than 35,000 sqm in Porta Nuova across 6 buildings (Bonnet considered on a pro-rata basis).
Manfredi Catella, Founder and CEO of COIMA RES, commented: “The Tocqueville acquisition is in line with our strategy of increasing our exposure to Milan Porta Nuova and adds to our portfolio an office property which offers an interesting rental growth potential. The features of the Tocqueville complex are coherent with the deep experience of COIMA in creating value by repositioning properties.”