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LendLease pushes on Santa Giulia

25 October, Milano Finanza

The Australia group is accelerating the closing and doubles its presence in Milan after the Expo deal. The whole project can be worth up to 2.5 billion euro. Constituted the newco for the management

Fast-paced. This is how LendLease is proceeding on its way to win the development project of Santa Giulia. In the meanwhile, the Australian group has achieved another victory in its plan of establishing in Milan, obtaining the development of the former Expo area. Its tie with the city and its institutions is increasingly stronger. At this stage, the administration might consent to an acceleration of the dossier concerning the land owned by Risanamento. This latter gathered yesterday its Board of Directors, according to Milano Finanza: perhaps, a definitive meeting to draft the agreement and the closing with the Australian partner, which, through its European branch LendLease Europe Holdings, has already started the newco LendLease Msg North headed by Andrea Rucksthul.

Lawyers and banks are ready to finalize the contract that might lead to the requalification and implementation project whose value might amount up to 2.5 billion euro in terms of total earnings once completed the construction of 400 thousand Sq m and the closure of the works for the residential part (50% of the total surface) and the commercial one (25%), as well the service and hospitality part (another 25%). LendLease estimates costs for 1.3 billion, granting to the company led by Steve McCann a potential capital gain of one billion euro. The only thing left to solve is the necessary authorizations to start the works by the Municipality of Milan. But the communication between the Lendlease managers and the Mayor Beppe Sala and his experts are at a good point, thanks also to the collaboration of the Risanamento Ceo Claudio Calabi. The agreement implies the commitment by the Australians to pay to the Italian real estate company a down payment of 25 million throughout a five years period.

But the expansion plan of LendLease doesn’t stop with Santa Giulia. There is also the development in the southern part (33 thousand Sq m) with the creation of a joint venture together with Milano Santa Giulia, bringing in this way the building area to a value of 34 million with an advance payment by the Australian company of 12 million, along with a percentage from the earnings originated from the two buildings that will be rising in the area.

Finally, the Australians aim at buying Sky Italia, the two towers which are the headquarters of the pay tv company owned by Rupert Murdoch. Once completed these operations, Risanamento will be able to extinct its debt towards its shareholder banks (especially Intesa Sanpaolo, Unicredit, and Banco Bpm) and to improve its net financial position, which at the end of August was at minus 633 million. Rothschild and Ashurst (succeeded to Dentons) on behalf of LendLease and Lazard and Dla Piper on behalf of Risanamento are working in the role of advisors on the deal.

Source: Milano Finanza

Translator: Cristina Ambrosi