Global real estate firm Hines and Dutch pension fund manager PGGM have partnered to build 1,400 rental apartments in Italy.

The partnership’s projects include an urban regeneration plan located in Lambrate and two real estate portfolios situated in Milan’s southern quadrant between Navigli and Porta Romana.

Hines said it will act as the developer and co-investor for the projects.

Hines said the investment for the Milano Lambrate project, comprising 400 residential units, is being made through the Milan Living Fund BTR 2 real estate fund managed by Savills Investment Management.

The Navigli Porta Romana project, which consists of 450 residential units and offices, was secured through the newly established Milan Living Fund BTR 1 fund managed by Savills.

The investment for the Bocconi area project, which consists of 550 residential units, is being made via the Milan Living Fund I fund managed by Antirion SGR.

The latest projects lift the residential investments made by Hines in Milan rise to over €2bn.

Mario Abbadessa, senior managing director and country head of Hines Italy, said: “The finalisation of these investments represent a step forward on our journey of expansion and diversification into the living sector in Milan.”

Tinka Kleine, senior private real estate director at PGGM, said: “The opportunity to build a residential portfolio of 1,400 units in Milan is a great addition to our portfolio with its focus on the mid-market rental segment.

“The expertise of Hines and our shared ESG ambitions create an excellent base to meet our financial and sustainability targets.”

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