Tag: Porta Vittoria

Hines plans investments for 5 bln € in total by 2021 with a focus on rentals and logistics

19 May, Il Sole 24 Ore

Hines seeks to grow its Italian portfolio up to 5 billion € by the end of the year, focusing on residential and logistics assets. The residential portfolio is now valued at 2.5 billion € (versus 1.5 billion € the offices), including long-term rentals and student living.

In Milan, Hines is about to close an operation in Porta Vittoria for 250 apartments. Meanwhile, the works have started in Milanosesto to develop 1,200 units and 800 units in San Siro, 200 near Navigli, and 70 in Torre Velasca.

Hines is also working with Arcese to acquire logistics assets in Brescia and Tortona. Besides, the company has exclusive rights on a last-mile project in Milan city centre.

Source: Il Sole 24 Ore

Translator: Cristina Ambrosi

Milan: York Capital acquired the assets of Porta Vittoria through the fund Niche

23 May, Bebeez

The fund Niche, managed by Prelios, completed the acquisition of the assets related to the bankruptcy of Porta Vittoria Spa. The fund is entirely underwritten by York Capital, which will complete the development of the 139 thousand Sq m area. The project implies the creation of over 160 apartments covering a surface of 23 thousand Sq m.

Source: Bebeez

Translator: Cristina Ambrosi

Milan: Prelios acquired Porta Vittoria through Fondo Niche

23 May, Il Sole 24 Ore

Prelios has recently completed the acquisition of the assets of Porta Vittoria in Milan through the alternative real estate investment fund Niche, which sees York Capital as one of its indirect investors.

The fund has acquired the credits held by Banco Bpm and will proceed to complete the development of the 139 thousand euro/Sq m area mainly for residential use.

Source: Il Sole 24 Ore

Translator: Cristina Ambrosi

International funds on the Milan property market

04 February, La Repubblica

After the having been struck since 2010, the construction site in Santa Giulia will resume thanks to the Australian LedLease through a joint venture with Risanamento.

Porta Vittoria is also leaving its troubled past behind. Following the bankruptcy of Danilo Coppola, the construction activities were suspended from 2007 to 2010 and from 2014 till present. The American York, through a fund managed by Prelios, has now taken over the site.

For Assimprendil Ance President Marco Dettori, these two examples alone would be enough to explain the thriving moment Milan is going through. The city alone is worth 10% of Italy’s GDP and has recently reached 400 thousand inhabitants. That’s the reason why things started moving, and the international players, unlike in the past, are here to stay.

According to Breglia from Scenari Immobiliari, Milan is a market on its own, with estimated urban renewal projects concerning a surface of 12.5 million Sq m up to 2034. Last year, the international investments in Milan were more than half of the total (4 billion over 7,5), and they’re supposed to reach 5.5 billion this year.

International investors focus on the city centre. For instance, Piazza Cordusio has seen the arrival of Starbucks in a building owned by Blackstone, while the former Unicredit owned by the Chinese Fosun will go to Dea Capital. Investments have started also spreading in the other parts of Milan. Sei Milano will be created from scratches thanks to n partnership between Borio Mangiarotti and the American fund Varde for an operation worth 250 million euro. Meanwhile, China Investment will finish a new residential complex near Porta Nuova by the summer. Near Prada Foundation, Beni Stabili will implement Symbiosis. Finally, Westfield will create Europe’s biggest shopping centre in Segrate.

To fully understand this dynamism, however, one must also consider the increased population, mainly represented by students and young professionals. It’s not by chance that Hines turned an old building near Bocconi into a student residence with 1,300 beds for an investment of 160 million. Starting from the Expo in 2015, the city has welcomed the arrival of young people, allowing international investors to see the country with a long-term perspective.

According to Andrea Ruckstuhl from LendLease, Milan is quickly becoming competitive at an international level, thanks to the long-term real estate projects. For example, the plan for the restart of Santa Giulia involves the construction of two office buildings and a sport and concert arena, also in view of the possible 2026 winter Olympics in Milan.

LendLease has also obtained the development of the former Expo area. The site will also accommodate the science and technology park Mind. The project combines private and public initiatives for a value of 2 billion in total.

As Prelios Ceo Riccardo Serrini explains, international investors tend to focus more on value-added properties, mostly concerning distressed asset to requalify, rather than core investments like entire buildings.

Source: La Repubblica

Translator: Cristina Ambrosi

The Court of Milan assigned Porta Vittoria to York Capital

30 November, Monitor Immobiliare

The long legal controversy concerning the Porta Vittoria development project has come to an end. The project was launched in 2000 by the developer Danilo Coppola. Following the bankruptcy of his company Porta Vittoria Spa, the area was assigned to three insolvency administrators who found in the company Progetto Vittoria Real Estate Spa, connected to York Capital Management Europe (Uk) Advisors Llp, a possible solution for the completion of the project.

Today, the Court of Milan formalised the ownership transfer of the area to the new company, relaunching in this way the works in Porta Vittoria.

Milan’s Urban Planning City Councillor Pierfrancesco Maran commented: “We’ve ended a dark chapter for Milan. Porta Vittoria has been left vacant for a long time, and now it can finally be recovered and made available again. We’re already in contact with the company in charge of the recovery of the land on which a public park will rise. We hope that the other works will start as soon as possible”.

Federico Oliva, director for York Capital Management Europe (Uk) Advisors: “We’re honoured to have been given the opportunity to take part in this requalification project, and we’re ready to carry out the interventions according to the plan. Milan is a very dynamic city in which we truly believe. We’re sure that the implementation of the project will have a positive impact on the quality of life of the residents”.

Once created the 30 thousand Sq m park in the area between Viale Umbria, Via Monte Ortigara and Via Cervignano, the company will then proceed with the sale of the first lot of apartments. Moreover, the project includes the implementation of another public park for 10 thousand Sq m of surface including sports facilities east from Via Cervignano and Viale Molise. These works will complete the part of the project which was already implemented: the road system, the almost-finished residential component, the Esselunga supermarket and the parking lot.

On Tuesday 11th December, at 6 pm at the Liberty Building, a public meeting will gather with Councillor Maran and the new owners to inform the neighbourhood of the restart of the works.

Source: Monitor Immobiliare

Translator: Cristina Ambrosi

Investigation closed for Porta Vittoria (Milan)

22 November, Corriere della Sera

Following the bankruptcy of the company Porta Vittoria Spa due to the failed requalification project of the largest disused area in Milan and the sentence for 7 years of the developer Danilo Coppola, the Court headed by judge Luisa Ponti archived the files concerning Pier Francesco Saviotti, former Banco Popolare Ceo and today president of the Banco Bpm Executive Committee.

Public Prosecutors Giordano Baggio and Mauro Clerici notified the conclusion of the investigation concerning the complicity in the bankruptcy. Saviottti, in fact, allegedly “provided in 2010 to Porta Vittoria through an 80 million mortgage then repaid by Porta Vittoria to Banco Popolare at the end of 2011 with another 210-million mortgage, the funds to acquire” two holdings for 45 and 25 million from Luxemburgish companies owned by Coppola while such holdings were “of no or totally inconsistent value”.

Regarding the statements of the then bank’s attorney Giuseppe Mercanti, as well as of some Coppola’s collaborators like the advisor Arnaldo Borghesi (former Lazard Italia), the tax consultant Vittorio Emanuele Falsitta, and the consultants Fausto Bongiorni, Paolo Costanza and Francesco Gianni, it will be likely requested the archiving.

Source: Corriere della Sera

Translator: Cristina Ambrosi

The American capitals are coming to Porta Vittoria. There will be no auction

09 May, Il Giornale

There is a breakthrough for the biggest urban area of Milan. The auction scheduled today to find a buyer for Porta Vittoria, the vast area comprised between Viale Umbria and Viale Molise resulting from the bankruptcy of Danilo Coppola, will not take place. The reason is the entrance of an American investment fund which officially announced to be open to taking over the assets as well as the debts of the developer. The request for agreement among creditors, which substantially cancels the procedure, has been already deposited and it will become operational if it gets the consensus.

The fund York offers enough money to satisfy all the creditors of Coppola (banks, mainly, and suppliers) which are claiming over 320 million. For the insolvency curators, it’s a bargain, if we consider that the first attempt to sell on auction the land and the properties almost completed (a hotel and 150 apartments) was unsuccessful due to the lack of offers and that the destiny of the new auction didn’t look better, offering the whole portfolio at a 20% discount. The participation of York is good news for the residents in the area, as they hope for an intervention on the disused area, as well as for the Municipality of Milan since the American fund is meant to take over also the commitments taken by Coppola, namely the reclamation of the green area and the implementation of a big park and a sports centre.

There are still a few obstacles, starting from the litigation between the old owner, Coppola, and his creditors, especially Banco Bpm. The court sentence that last February condemned Coppola to seven years of imprisonment due to fraudulent bankruptcy also identified the potential responsibilities of the banks (as always argued by the developer) which had first supported the project and then conditioned the results. As a consequence, the court ordered an investigation of the former Banco Bpm Ceo, Pier Francesco Saviotti, and six among lawyer sand advisors. The motivations haven’t been deposited yet, but the District Attorney’s Office has already written some names in the roll of suspects.

The fight between Coppola and the banks also impacts the future of the area: Banco Bpm is endorsing the entrance of the American fund York, while Coppola favours the investment fund Algebris of Davide Serra. It might have been indeed Algebris to have sent the opposition deposited yesterday at the bankruptcy division against the agreement with the American fund.

As we can see, the situation is very complicated. But at least something now seems to be moving for Porta Vittoria, which seemed a mess without a solution for a long time. However, someone might wonder why financial companies entirely lead the competition, while the Milan developers – from Manfredi Catella to Davide Bizzi – keep clear from such apparently attracting area.

Source: Il Giornale

Translator: Cristina Ambrosi

Another auction for Porta Vittoria. The ghost area is on sale

25 March, Il Giornale

In the city where construction is thriving, and skyscrapers are rising everywhere, the biggest and most central real estate operation is stuck and lacking an owner. We don’t know how long the area will stay in this state. This is the story of Porta Vittoria, hit by the bankruptcy of his developer Danilo Coppola. Last December the auction organized to find a buyer for the area ended up getting no offers. Now the curators are trying again, with a price heavily discounted and hoping that somebody will show up. But it’s not granted things will be better this time.

The new bid notice was published yesterday on the website of the Court of Milan as decided by the delegate judge Armina Simoneti and by the three curators working on the Coppola bankruptcy. In December, the lot was put for sale at a starting price of 152 million euro. This is already a very convenient price considering that it includes also the big hotel on Via Cena, whose construction is finished and only needs the be connected to the utilities, and 150 luxury apartments, also ready. The curators hoped till the last minute that somebody would have made an offer. There was some preliminary action. The most relevant came from Davide Bizzi, the developer of “Milano Sesto”, currently implementing a mega operation in the Falck area in Sesto San Giovanni. In the end, neither Bizzi nor the others made an official offer.

The news was very discouraging for the people living in the area, having to live close to the area left in a state of abandon and degrade, extending till Viale Molise. Now the curators are giving another try, with the lot on sale: only 120 million to get it, more than 20% discount on the price of three months ago. Will the discount be enough to get some interest?

When asked, Davide Bizzi says to be out of the game for the moment and that Porta Vittoria is not in his plans. There are no candidates, so far. The new deadline is set for 3rd May and risks to pass without getting any offers.

The reasons for this caution are many. There are worries that Coppola’s legal issues (recently condemned to a 7-year detention for bankruptcy) might reflect on the operation and penalize it. There are also the claims from the Municipality, requiring to the potential investor to reclaim the whole area and build a sports centre, certainly not incentivising offers. As a result, everything stays still: hotel, apartments, weeds and projects.

Source: Il Giornale

Translator: Cristina Ambrosi

Porta Vittoria, agreement between York Capital and Banco Bpm

22 February, Milano Finanza

Even before the expiry for the exclusive right (end of February) and without extending the negotiations any further, the fund York and Banco Bpm has found a definitive agreement for the transfer of credits (over 220 million) of the bank guided by Giuseppe Castagna inherited by the old entity Banco Popolare Spa, which was partner of the real estate developer Danilo Coppola bankrupted with a 400 million debt. Tomorrow the bank will officially disclose the agreement with the fund which has obtained the credits of Colombo Costruzioni (26 million). Despite the bank has been put at the bottom of the list of the creditors for unsecured credits due to a decision of the Court of Milan (Banco Bpm appealed such a decision), the agreement implies that Banco will receive up to 70% of its credits towards Porta Vittoria, thus approximately 150 million, without being involved in potential future litigations. At this stage, York has only left to find an agreement with Ipi of the Segre family (once owned by Coppola himself) that has an exposure with the bankrupted real estate company for a value of about one hundred million.

Once the operation with Banco Bpm will be formally defined (a refund of their unsecured credits will be granted also to the other creditors), it’s likely that Banco Bpm will withdraw its petition against the decision of the judge Simonetti.

In this way, it will be possible to start the real estate development phase concerning a surface of 142 thousand Sq m. It will be used to build new residential and commercial properties in the centre of Milan. Concerning the residential part, the works are already completed. Hence, York will focus on the development of the remaining area which should see the construction of a hotel (at this purpose, a first proposal has been made to the Spanish hotel chain Nh Hotels), a sports centre and an area dedicated to shopping. The investments will amount to other 60 million altogether, including the investments to complete the construction site, expenses and charges. It’s not to be excluded that in the future the fund that has taken over the credits of Porta Vittoria will find new partners, but nothing certain so far. We must say though that this implementation phase will require several months for its completion. Finally, we must remind that the fund Algebris of Davide Serra submitted at the begging of the year a proposal of agreement with creditors to the Court of Milan. Considering this agreement between York and Banco Bpm, such an option seems to be no longer applicable.

Source: Milano Finanza

Translator: Cristina Ambrosi

York Capital takes over Colombo’s credits in Porta Vittoria

13 January, Il Sole 24 Ore

A surprising development for the Porta Vittoria area in Milan collapsed under the weight of a 400-million-euro debt.

The American fund York Capital is now definitely the favoured among the competitors in the match over the area formerly owned by Danilo Coppola. After a negotiation lasted several weeks, York Capital has taken over the credits of the main non-bank creditor of the project, namely the company Colombo Costruzioni, that built the infrastructures and the buildings of the area.

The broker Blue Factor has reached an agreement with Colombo Costruzioni for the purchase of its credits. We must note that the majority of the necessary funding was obtained from a securitisation company whose notes will be underwritten by the investment funds managed by York Capital Management. This is an important step forward since York Capital has already signed a preliminary agreement (expiring in February) with the main creditor for the area, Banco Bpm, claiming a credit of over 200 million. At this stage, we must wait for the answer from the fund Algebris who, through the Nike Real Estate, the company managed by the fund Algebris II, deposited last week a bankruptcy settlement concerning the company Porta Vittoria Spa. The proposal was made in order to allow the full payment of the preferential creditors, together with the repayment of big quotas to the other creditors. In any case, the matter is very complex since there are still some issues to clarify regarding the past role of Banco Bpm in the area. The bank, in fact, is currently under investigation for its alleged managing and coordinating activity for Porta Vittoria Spa, now bankrupted. On the other hand, Porta Vittoria Spa may come up with a proposal capable of satisfying the creditors. Certainly, York Capital, by purchasing the credits from Colombo Costruzioni will have a decisive role in terms of voting power in the assembly of creditors.

Source: Il Sole 24 Ore

Translator: Cristina Ambrosi