Coima SGR and Redo SGR have acquired Italy’s largest urban regeneration project from a consortium including Hines and a Kuwaiti sovereign wealth fund-backed investment firm.

Coima and Redo have agreed to buy MilanoSesto SpA, the company that owns the majority of the site, from Hines Iron MilanoSesto Associates. Coima and Redo have also agreed to buy Unione Zero from Hines and Cale Street, in a deal that gives the buyers a 90% stake in the regeneration development.

Back in 2020, Hines teamed up with Cale Street to buy and develop Unione Zero, the first phase of the MilanoSesto redevelopment project in the north-east quadrant of Milan’s metropolitan area. At the time, the pair were making the investment by committing €500m through a fund managed by Prelios.

The MilanoSesto project, situated on a former industrial site, is expected to transform a 1.5m sqm area into modern public spaces. The project will include alternative residential product offering affordable housing as well as services such as child care and co-working areas.

The project is backed by banking group Intesa Sanpaolo as the project’s main financier, as well as other lenders including Unicredit, Banco BPM and IFIS. As part of the deal, a number of financial transactions involving the conversion of around €900m of debt into equity have been agreed.

Manfredi Catella, founder and CEO of Coima SGR, said Coima’s commitment alongside Redo, a company focusing on regeneration with a high social impact, and Intesa Sanpaolo ”provides a unique blend of skills to support Milan and Italy’s growth”.

”With a deep sense of responsibility, together with our partners, we will take forward this strategically important project with the aim of ensuring it becomes an international benchmark for socially and environmentally sustainable urban redevelopment, attracting national and international investors with strong ESG commitments, creating a thriving place fit for a zero-carbon future.”

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