Cromwell European REIT has secured an unconditional leasing commitment for about 50% of the lettable area at its asset known as Via Nervesa 21, which is currently undergoing redevelopment.

This lease has been secured with a major communication industry leader with a market capitalisation of over EUR40 billion and more than 8,000 staff, said the REIT on 24 March.

Via Nervesa 21 is Cromwell European REIT’s asset that is being redeveloped into a Grade A office property.

“Upon its completion in the fourth quarter of 2023, the EUR32 million redevelopment in the vibrant Porta Romana district in Milan will offer 10,000 square metres of Grade A office space with premium amenities, supported by LEED’s highest Platinum certification and WELL’s Gold certification”, said Simon Garing, CEO of the REIT’s manager.

“Efforts to attract and retain talent are increasingly driving companies to migrate to high-quality and sustainable designed office premises in good locations”, said Garing.

“The high profile and commitment of our anchor tenant-customer validates our vision for the site. We are confident Via Nervesa 21 will attract further significant interest for its remaining space”.

Related: Cromwell European REIT to embark on divestment spree for growth

Cromwell European REIT was last done on the Singapore Exchange at EUR1.56, which presently implies a distribution yield of 11.02% according to data on the Singapore REITs table.