Lendlease has established a joint venture with Canada Pension Plan Investment Board (CPP Investments) to invest in an Italian real estate alternative investment fund that aims to develop Phase 1 of the West Gate area of the Milano Innovation District (MIND).
CPP Investments and Lendlease have agreed to jointly invest circa €400 million of equity as a 50:50 joint venture in the fund for the development and long-term ownership of approximately 150,000 square metres of the 480,000 square metres that Lendlease has private development rights for.
The fund will develop part of the West Gate area of MIND; the mixed use area will become a recognisable destination for researchers, workers, residents and other visitors to the district’s west entrance.
The fund will be managed by Lendlease Italy SGR SpA and Lendlease Services Srl will undertake the role of development and project manager.
“Partnering with CPP Investments is an important milestone for this exciting project in Milan. Our partnership will honour the legacy of the former Milan World Expo site and help realise the vision of establishing a world-class innovation district,” said Andrea Ruckstuhl, Head of Continental Europe for Lendlease.
“Innovation districts are becoming more and more a new asset class; there is a new sensibility on the importance of human centre innovation, in line with the objectives of the European Recovery Plan. MIND is the physical infrastructure where we will set the base and the foundation for the future, working on the talent attraction, the knowledge economy, the greatest challenge of our time, such as the decarbonization, and the social inclusion of the community,” he added.
“MIND represents an excellent opportunity for CPP Investments to extend our relationship with an experienced existing global partner and an expansion of our investments in the life sciences sector, building on our experience at Milton Park in the UK,” said Andrea Orlandi, Managing Director, Head of Real Estate Investments – Europe, CPP Investments. “This new destination in Milan is set to become one of the top life-sciences campuses in Europe, supported by a new leading Italian hospital and the University of Milan Life Science campus and research institute. We are providing long-term capital for this project which will ultimately generate strong risk-adjusted returns for CPP contributors and beneficiaries.”