GARBE Industrial and SFO Capital expand partnership with new Milan logistics project

GARBE Industrial Real Estate GmbH, has announced its third joint venture with SFO Capital Partners, a London-based global real estate investor. The collaboration will focus on the development of MilEast Logistics Park, a 22,000-square-metre Grade A logistics facility in the Milan metropolitan area, Italy.

The MilEast Logistics Park project is being developed on a brownfield site in Covo, Bergamo, acquired in October 2024. GARBE Industrial will oversee the property’s development and management, ensuring that it meets high environmental and sustainability standards, including LEED Platinum certification. The state-of-the-art facility will feature 18 loading bays, a 12-metre clear height, and 118 parking spaces, designed for flexible single- or multi-tenant use.

According to Dr. Peter Bartholomäus, Head of Fund Management & Capital Markets and Member of the Executive Board at GARBE Industrial, the new development underscores the joint venture’s commitment to sustainable and innovative real estate solutions. He emphasized that GARBE’s collaboration with SFO Capital Partners has consistently delivered high-quality, future-proof logistics properties, benefiting both tenants and investors.

The first phase of the project involved site redevelopment and decontamination, including the planting of local tree species to promote biodiversity. The facility will incorporate sustainable insulation technology, rainwater harvesting, photovoltaic systems, and recycling solutions. Additionally, green spaces and recreational areas for employees will enhance the property’s environmental and social impact.

The Milan metropolitan area remains one of Italy’s most attractive logistics markets, characterized by low vacancy rates and steady rental growth. The region serves as a key hub for leading third-party logistics providers (3PLs) and major retail distributors, further strengthening the investment rationale behind this project.

This new joint venture builds upon the successful track record of GARBE Industrial and SFO Capital Partners. Their second joint project, a 83,000-square-metre Grade A logistics facility near Silvano Pietra, Lombardy, reached practical completion in December 2023. Developed on a brownfield site, the facility achieved LEED Platinum certification, aligning with the highest environmental and technical standards.

The first collaboration between the two firms dates back to 2022, when they jointly developed a 10,600-square-metre logistics hub in Venlo, Netherlands. The property was long-term leased upon completion and upgraded to meet top-tier ESG standards, reflecting strong demand for modern logistics spaces in the region.

Dr. Bartholomäus highlighted that the long-term collaboration between GARBE Industrial and SFO Capital Partners continues to prove its success. With an investment strategy focused on developing sustainable, high-end properties in key European logistics hubs, both companies remain confident in expanding their joint portfolio with future projects.