01 March, Il Sole 24 Ore
Santa Giulia is reopening its construction site and very soon new office buildings will rise beside the Sky towers. This is the objective of In Town, the joint venture composed of Risanamento and the Australian developer Lendlease for the development of two lots in the southern part of the area.
The construction works for the first building named Spark One will start in the summer. It will have a surface of 25 thousand Sq m and sustainable Leed Platinum certified spaces. It will be positioned exactly in front of the Rogoredo metro station. Six months later, the works for the Spark Two will start, other 10 thousand Sq m. The total investment is valued around 120 million euro.
The first building is expected to be completed in two years, and it may have already a lessee by June. Interviews are currently going on with all the main players. Some of these are brought by the co-agents Colliers and JLL, while others might be contacted directly by the joint venture. Among the interested companies, there are banks, insurance and technology companies. The project can accommodate 3 thousand workstations.
According to the high management, the strength of the project is its good connection with the city: 15 minutes by metro and eight stops from Duomo, as they stress.
“This is the first phase of a wider project concerning Santa Giulia – says Davide Albertini, In Town president and Risanamento managing director – Then, we will work on the northern part, where 3,500 apartments will be built (50% of the space is for residential destination) and services”.
Spark One and Spark two, together with the Sky towers (for a total of 120 thousand Sq m of offices), might be part of a property fund or be destined to a club deal addressed to institutional investors. “We’re have already implemented operations of this type in the different locations around the world – explains Andrea Ruckstuhl, head of Italy and continental Europe for Lendlease and In town Ceo – Among the investors of our funds, there are sovereign funds and retirement funds. We’re currently evaluating the options. In any case, we’re intending to remain the investors and the administrators of the project once the development will be completed (it will take about ten years)”.
At the ground floor of Spark One, there will retail businesses for 2 thousand Sq m, connecting the already existing promenade.
“The proof of the success of a generation is in its capacity of generating public spaces”, continues Ruckstuhl.
The agreement between Risanamento e Lendlease is based upon sharing a common vision with a particular attention to the social aspect. “We aim at supporting the territory betting on local businesses – continue Albertini and Ruckstuhl – but we’re also liaising with the City of Milan”.
For the remainder of the project, we must wait for the approval of the urban framework agreement, not earlier than the first quarter of 2019. The project is currently being examined by the Region of Lombardy. Risanamento and Lendlease reached a development agreement in November 2017 to proceed with the implementation of 400 thousand Sq m gross floor area distributed among residences (50%), offices (30%) and commercial spaces (20%).
“The residential part of Santa Giulia might be included in a fund dedicated to rents – concludes Ruckstuhl -, an activity already carried out by Lendlease at a global level”.
Source: Il Sole 24 Ore
Translator: Cristina Ambrosi