The Milan value-add joint venture between Hines and PGGM, the large Dutch pension fund manager, has completed investment into Via della Spiga 26 in Milan, via a real estate fund managed by Savills Investment Management SGR SpA. The asset was previously owned by an institutional real estate fund managed by Invesco in partnership with Thor Equities, and was historically occupied primarily by Dolce & Gabbana.
The circa 12,000 sq m building will undergo a comprehensive renovation programme aimed at unleashing the great potential of the site, which is located in a historically prime location for luxury retail in Milan’s famous Quadrilatero della Moda, an area that will also benefit from a broader revitalization program.
Hines and PGGM entered into a joint venture in 2017 to target high-street retail, office and mixed-use value add opportunities in Milan. The parties previously invested in a portfolio of three office buildings in late 2017.
Mario Abbadessa, CEO of Hines Italy, commented: “I’m very pleased with this acquisition. It allows us to invest into a prime asset in a historic luxury street of Milan that will benefit from a comprehensive revitalization plan. At Hines Italy, we continue to have confidence in the city of Milan, where we have long-time expertise and a solid track record. PGGM is an important investment partner of Hines with whom we truly enjoy working and we anticipate to continue co-investing in the future.”
Tinka Kleine, Senior Director Private Real Estate for PGGM, said: “Milan has become part of our city focused investment program because it offers great investment opportunities, both for achieving attractive financial returns and for improving the sustainability performance of well-located assets. Hines’ expertise in executing this strategy is key for our successful partnership and we look forward to creating a great new destination in Via della Spiga.”
The joint venture between Hines and PGGM was advised on this transaction by Legance on Legal & Financing aspects, by DLA Piper on regulatory aspects, and by PwC in relation to tax. Avalon acted as technical advisors while Ammlex acted as administrative and town-planning consultants. BNP Paribas is providing project financing for the investment.