Real estate investors Hines and Blue Noble have expanded their joint venture relationship in Italy with a new €70m investment.

The companies have acquired the Via Borgospesso 15 building in Milan with the aim of creating over 70 serviced apartments.

The investment was made via a recently established Smart Stay fund, managed by Antirion, the companies said in a statement.

The 5,000sqm property will be restructured to provide a range of services, including coworking areas, retail spaces and areas for working out to complement the apartments.

With the latest deal, the Hines and Blue Noble partnership has invested €200m in total in recent years, all in the living sector.

Mario Abbadessa, senior managing director and country head of Hines Italy, said: “Hines continues to invest significantly in the living sector. Within this segment, serviced apartments show strong potential for development and growth with the backdrop of a limited supply in the Milan area.”

Abbadessa said the target for Hines is to invest €2bn in the next 24 months both in the living space via student housing, affordable residential units and serviced apartments, and in the logistics sector.

“We are sure that the resilience of Milan will help it emerge from this difficult period even stronger.”

Paul Forshaw, CEO of Blue Noble, said: “This is the fourth strategic investment we have made in Italy with our longstanding partners, Hines, and grows our portfolio of assets for student residences or short-term stays.

“We have a strong conviction in the living sector and believe that these two segments, in particular, are set to grow in the primary Italian markets.”

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