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Real estate: Hines targeted San Siro. The US funds are competing for Milan

16 February, Il Sole 24 Ore

Hines targeted San Siro. The company is ready to launch a requalification project potentially worth 400 million euro. Nowadays, big investors operating on the Italian real estate market are increasingly focused on urban requalification and development projects. This has concerned only selected cities so far, with Milan leading the chart.

The city is experiencing the relaunch of the Italian real estate sector. Prices for residential properties have been rising since 2013. Milan is changing quickly. After having welcomed the arrival of big projects such as CityLife and Porta Nuova, the city sees the start of new requalification projects while it’s waiting for the final approval of future ones.

In Milanosesto, Hines and Prelios are competing for managing and coordinating the real estate development covering 1.4 million Sq m. In Santa Giulia, Risanamento and the Australian LendLease are waiting for the green light from the City of Milan to start building houses in the site. Finally, the Arena might host the winter Olympics if Milan with Cortina will be the winners of the bid.

There are many other projects in the pipeline — for instance, the acquisition by the American Hines of the Snai area in San Siro. The site includes the former racecourses, covering a 45 thousand Sq m area located near the stadium. According to the rumours, there is already an agreement, and the transfer of ownership from Snaitech to Hines might be completed in the first half of 2019. The former racecourses will accommodate auxiliary services to the stadium, from shops to a museum, football clubs and restaurants, along with residences and senior living in the southern part close to the metro station. The Inter and Milan football clubs will have to decide whether to tear down the existing stadium and build a new one in the current place of the parking lot or whether to renovate the existing one. The clubs both sent letters to the City administration demanding more space in the area. Hines and the City of Milan are still deciding the intended use of the site, which will determine its value. The whole operation might be worth 300-400 million.

Requalification projects concern 3 million Sq m in total in Milan, also considering the former rail yards, in a five-year horizon. Meanwhile, large investors continue with their shopping. Ubs has recently acquired La Forgiatura, an integrated campus for a surface of 30 thousand Sq m which will undergo a requalification project with a focus on energy efficiency located the Certosa area. The site has seen the recovery of approximately 15 thousand Sq m, in addition to the 10 thousand Sq m dedicated to new construction.

The Traversi garage, right behind San Babila, has changed ownership, following the sale by a fund of Bnp Paribas Real Estate to Invesco for approximately 100 million. The property has been vacant for over a decade, having changed owner several times, from Aedes to Risanamento, and finally Banco Popolare. Gva Redilco has been appointed for marketing its spaces, starting from the temporary stores.

Coima and Ardian are competing for obtaining the former Boeringer headquarter near Porta Romana. The project concerning the homonym rail yard will radically change the area. Its requalification had already started with the arrival of the Prada Foundation and Symbiosis.

Finally, there is a great expectation for the building property of the City of Milan in Via Pirelli 39 overlooking the Melchiorre Gioia bridge. The auction is scheduled for the 29th of March. The starting price is 87.5 million plus 18 million for the annexed parking lot. All the primary players of the sector will take part to get the last piece of Porta Nuova left on the market.

Source: Il Sole 24 Ore

Translator: Cristina Ambrosi

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