Hines has acquired a residential real estate portfolio in Milan, Italy on behalf of the Hines European Value Fund 2 (HEVF 2).
Hines said this investment represents an opportunity for HEVF 2 to create market leading Build-to-Rent (BTR) with superior amenity provision and placemaking.
The portfolio, spanning 40,000 square metres, is located in the South-East quadrant of Milan in Via Trivulzio 6/8, Via Roncaglia 8 and Via Villoresi 11/13/15, respectively.
”In keeping with the growing demographic expansion of the city in which some 300,000 new inhabitants are expected by 2035, Hines expects to launch approximately 300 residential units onto the market by 2023 to meet growing BTR product demand,” said the company in a statement.
The properties are located in the heart of Milanese historical residential neighborhoods in the De Angeli, Via Washington and Navigli areas, and are less than 15 minutes from Piazza Duomo by public transport.
Paul White, Senior Managing Director and Fund Manager HEVF 2, at Hines, commented: “From an investment perspective, it has been relatively hard for many cross-border investors to gain market exposure to the residential sector in Milan, so achieving this rare, off-market opportunity and quality in one transaction is a great success for the Fund. Our advantage of a ‘boots on the ground’ team in Italy with in-depth knowledge of the local market has enabled us to make thorough on-site diligence of the assets and is yet another example of this advantage we have enjoyed repeatedly across Europe since Q1 2020. It has meant the pace of our deal origination and execution has not suffered.”
This acquisition marks Hines’ latest investment in the living sector in Milan, following a string of recent deals, including MilanoSesto, Nodo Bovisa, Borgospesso 15, Ex Trotto, Torre Valesca, Giovenale 15 and Ripamonti 35.
Hines ongoing strategy is to develop over 5,000 new BTR units in Italy by 2025 by transforming urban areas or individual buildings that have been in a state of disuse into innovative residential solutions aimed at professionals, couples and young families.
“We continue to push ahead with the growth of our living platform in Milan. We believe in the sustainable development of this constantly-evolving city, which increasingly requires new rental options paired with services designed for wellbeing to meet ever increasing demand, confirms Mario Abbadessa, Senior Managing Director and Country Head of Hines Italy.
“The creation of new living spaces, accompanied by innovative ancillary services at sustainable and affordable rents, will improve the quality of life of residents, and at the same time regenerate historic residential areas in Milan that have been long neglected. In essence, we are contributing to the redevelopment of the neighbourhood in its entirety and the city of Milan, while creating value for all residents, characterised by mobility, connections and greenery, with a focus on environmental and social responsibility.”
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