Ontario Teachers’ Pension Plan and Boreal IM JV breaks ground at Milan development

The development of a 56,000 sqm state of the art warehouse on a 84,000 sqm land plot in Monticelli, Piacenza, has been kicked off by Kryalos SGR and Boreal IM on behalf of the Ontario Teachers’ Pension Plan’s JV with Boreal IM.  

Set to complete in Q2 2025, the new development is adjacent to a 58,000 sqm existing warehouse, also owned by the fund, that is long-let to a multinational manufacturer.

The development plot was acquired by the JV in Q3 2023 as part of a portfolio purchase comprising four fully let warehouses that included two development plots in leading Italian logistics hubs, a key part of the acquisition’s value creation rationale. The portfolio was acquired in a fund managed by Kryalos SGR on behalf of the JV.

The JV currently has 200,000 sqm of development projects underway in Germany, Spain, France and Italy. The Monticelli scheme is being led by partner and former architect Nikos Koulouras, supported by an in-house technical team with extensive previous experience at Valor, Mileway and Prologis. Koulouras has been involved in the development of a number of logistics projects across Europe.

E2K has been appointed as contractor and The Blossom Avenue as architect. The warehouse has been designed according to Boreal’s proprietary design guidelines, and will become one of the most sustainable logistics properties in Italy, targeting BREEAM Excellent or higher. It includes design features such as increased natural light, raised terraces, exercise and sporting facilities, and green spaces.

Monticelli is part of the greater Piacenza logistics area, one of Northern Italy’s strongest industrial markets, characterised by excellent connectivity, low vacancy, and an undersupply of new-build logistics developments. The assets are strategically located near the intersection of the A1 highway, connecting Milan with the south of Italy, and the E70 which gives easy access to the A4, the main highway linking the north of Italy.

The Boreal and OTPP JV’s portfolio now totals 1.3 million sqm and €1.6bn GAV in standing assets and development projects in Europe’s six largest markets.

Nikos Koulouras, Partner, Boreal IM, commented: “As we create one of the highest-quality logistics portfolios in Europe, developments in markets with attractive supply-demand dynamics are a key driver in creating value. Our local origination capabilities, coupled with our in-house development expertise allow us to identify, permit and deliver best-in class, sustainable logistics assets that meet the latest occupier requirements. We are already receiving strong interest from tenants for the asset at this early stage.”