Hines and Allianz Real Estate have announced an €80 million investment in the Urban Mile fund managed by Blue SGR.
The investment sees the acquisition of 110,000 square metres of brownfield land in Via Rubattino in Milan for the construction of an innovative logistics hub designed for last-mile deliveries and electric mobility.
The new facility will be one of the largest logistics platforms for the city of Milan and will be built over the next 36 months.
Located in a strategic position, it is near the eastern ring road, Linate airport and the Segrate intermodal terminal, which connects Italy with Northern Europe, including Germany, Belgium and The Netherlands, and Southern Italy.
”The logistics facility will play a key role in supporting e-commerce-related deliveries as the need for loading bays near urban areas grows. As a result of having an integrated system, it will become crucial in integrating heavy goods vehicles into local transport, said Hines in a statement.
The facility also includes innovative solutions to promote electric mobility and has been designed to facilitate and promote sustainable travel such as cycling in the surrounding area to further contribute to the reduction of emissions.
In line with both Hines and Allianz Real Estate’s decarbonisation targets, the project will be carried out in accordance with the highest international standards of sustainability and safety with a strong focus on its environmental impact. It has been designed to comply with Carbon Risk Real Estate Monitor (CRREM) metrics, which aim to accelerate decarbonisation and increase the resilience of commercial buildings to climate change.
It will include photovoltaic panels, filtering paved surfaces for water drainage, low-consumption LED lighting, high-performance cladding to dissipate external heat and maintain the internal temperature and tree-lined environmental corridors to limit the impact on the surrounding environment. It is also expected to be awarded a BREAAM ‘Very Good’ certification upon completion. The already reduced CO2 emissions will also be offset by the creation of an internal green area with drainage functions covering over 22,000 square metres.
Mario Abbadessa, senior managing director & country head of Hines in Italy, comments: “This is our second investment in the logistics sector this year and represents our first last-mile facility for Hines in Milan. By partnering with Allianz Real Estate on this facility, Hines can further strengthen its presence in the logistics market in Italy and develop projects that incorporate innovative techniques and have a positive, direct impact on urban cities and the people that reside in them.”
Donato Saponara, Head of Investments West Europe – Country Head of Italy, Allianz Real Estate, said: “As the demand for last-mile logistics facilities continues to grow in such a competitive market, we are delighted to participate in this investment that showcases the strength of our team, our local network and expertise, and our market proposition. Our focus is on building our exposure to logistics alongside prime partners, developing cutting edge facilities that incorporate our approach to ESG alongside addressing the shortage of supply.”
The construction of this logistics platform is part of a much broader urban regeneration project that involves the whole Ex Innocenti area, which hasn’t been redeveloped for over 10 years. The project is part of the implementation of the Grande Funzione Urbana Rubattino, envisaged by the PGT of the Municipality of Milan, which covers over 300,000 square meters. In this urban regeneration plan important public amenities will be included, such as the “Magnifica Fabbrica” della Scala which will host workshops and exhibition spaces and the planned extension of Lambretta Park, which will spread across circa. 70,000 square metres.