07 January, Milano Finanza
The former Trotto area near the Meazza stadium in the neighbourhood of San Siro in Milan is about to have a new owner. This time, there is an actual plan for the requalification of this area covering 150 thousand Sq m which has been left abandoned for a long time. The matter over the asset owned by Snaitech arrived at a breakthrough at the end of last year. The American Hines, whose Italian branch is guided by Maio Abbadessa, after having already got the exclusive, is now about to complete the due diligence.
The advisors Bnp Paribas Real Estate on behalf of Snaitech and Vitale&Co for Hines and Prelios are currently working on the operation. Once completed, Prelios will manage the real estate fund. The transaction is valued 250-300 million. It’s possible that the negotiations will come at a closing already at the beginning of the year since the City of Milan has started the procedures for the new PGT (territorial zoning plan) and the Trotto area is one of the key points for the urban renewal of the city. The site might also be used to build a new football stadium, just beside Meazza. Hines has already in mind the new purposes concerning large part of the area. A portion will be dedicated to sports facilities (while waiting to know the intentions of the Milan and Inter FC regarding the facility), while another part will be used for social housing. Another part will be destined to residential real estate developments, including some apartments which won’t be sold but will be rented instead according to the multifamily and senior housing models. Finally, there will also be retail spaces and services to the community.
In the ongoing negotiations between the City of Milan, involving especially the City Councillor for Urban Planning Pierfrancesco Maran, and the two Milan’s football teams, the Trotto area might turn handy given the closing of the agreement between Snaitech and Hines and the upcoming approval of the new PGT.
For Hines, this will be another investment in Italy after those already concluded in the past few years. In the last 24 months, Hines acquired the former Luxottica headquarter in Via Cantù, in the city centre of Milan, for 100 million; a building in Via Dante worth 70 million leased to shops and offices; another prime property in Piazza Cordusio bought from Sorgente for 120 million euro which will accommodate the Uniqlo flagship store; finally, an asset in Via Broletto, the historical Palazzo Aliverti, occupied by the Gucci. In Florence, Hines acquired a 15th-century building for 80 million, while in Rome the company bought the former Banco di Roma offices in Piazza Edison. Hines is strongly focused on student housing, where it has set a budget of 500 million.
Source: Milano Finanza
Translator: Cristina Ambrosi