Kryalos SGR and Crossbay, the pan-European urban logistics platform incubated by MARK, have completed the acquisition of a logistics property near Milan.  

Crossbay’s first transaction in Italy for its second portfolio – following the €1.6bn sale of its first to Prologis in 2022 – was completed through the Bay Fund, a closed-ended fund managed by €12.1bn asset manager Kryalos SGR and one of the most active players in the Italian real estate market, on behalf of Crossbay. 

Acquired from an international food company, the vacant asset comprises a 9,000 sq.m warehouse with 18 loading bays. It is located in the area of Pieve Emanuele, less than 15km from Milan and with excellent accessibility to major motorways including the A1 – which connects Milan to Naples, and the A7, connecting Milan to Genova.

The transaction includes a full restructuring of the asset, aimed at enhancing its features and substantially improving ESG credentials. The restructuring is expected to be completed by Q2 2024.

Kryalos SGR and Crossbay, who aim to acquire over 400,000 sq.m in the next two years, will undertake indeed extensive renovation works and energy efficiency improvements of the building. The works include the demolition of interior spaces, the renovation of offices, the replacement of systems, roof and loading bays, as well as refreshment of the façade.  

Paolo Bottelli, CEO of Kryalos Sgr, said: “This acquisition is the first concluded by the new fund, which is Crossbay’s Italian investment platform, and concerns a very interesting logistics asset in terms of characteristics and strategic position near Milan, which we will enhance through a refurbishment intervention. We are also very pleased that MARK Capital Management has chosen to consolidate the relationship with our asset management company by continuing the development of its strategy in Italy together with us”. 

Marco Riva, CEO of Crossbay and head of logistics at MARK, said: “Italy is a key target market for Crossbay and we are pleased to have completed this acquisition through the Bay Fund. There is significant value-add potential through extensive restructuring, enabling us to create value in one of Europe’s largest economies and one of the most resilient logistics markets.”