Hines’s latest European value-add real estate fund has marked its entry into Italy’s residential market with the acquisition of a portfolio in Milan.

According to sources, the Hines European Value Fund 2 (HEVF 2) fund has invested €120m to buy the 40,000sqm portfolio in the South-East quadrant of Milan.

The assets, built in the 1970s and currently in disuse, will undergo extensive regeneration.

Hines said the investment represents an opportunity for HEVF 2 to “create market-leading build-to-rent (BTR) with superior amenity provision and placemaking”.

The manager said it expects to launch approximately 300 residential units onto the market by 2023 to meet growing BTR product demand.

This acquisition is the first for the fund in Milan but for Hines, it marks the latest investment in the living sector in Milan, following a string of recent deals, including MilanoSesto, Nodo Bovisa, Borgospesso 15, Ex Trotto, Torre Valesca, Giovenale 15 and Ripamonti 35.

The ongoing strategy for Hines is to develop over 5,000 new BTR units in Italy by 2025.

Paul White, a senior managing director and HEVF 2 fund manager, said: “Our advantage of a ‘boots on the ground’ team in Italy with in-depth knowledge of the local market has enabled us to make thorough on-site diligence of the assets and is yet another example of this advantage we have enjoyed repeatedly across Europe since the first quarter of 2020. It has meant the pace of our deal origination and execution has not suffered.”

Mario Abbadessa, a senior managing director and country head of Hines Italy, said: “We continue to push ahead with the growth of our living platform in Milan.

”We believe in the sustainable development of this constantly-evolving city, which increasingly requires new rental options paired with services designed for wellbeing to meet ever-increasing demand.

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