Altagamma proposes revamp of Milan's iconic Galleria

Fondazione Altagamma, Italy's luxury goods association headed by the Versace fashion designer family, has unveiled plans to revamp the landmark Vittorio Emanuele II retail gallery in Milan.

Under the proposal presented to the municipality, the 19th-century Galleria would be sold to a new closed-end fund with a life term of 30 years. Altagamma would then buy a 49% stake in the fund from the city of Milan for EUR 400 mln, while the city itself would retain the remaining 51%.

'With our proposal, we aim to create the most beautiful mall in the world, property of both institutions and private investors, which would always join their efforts to make it look great,' said Santo Versace, the foundation's president.

Altagamma would act as the fund’s adviser and help carry out the expansion of the scheme which would see its retail space double to around 50,000 m². In a statement, the foundation said it expects annual profits for Milan to reach EUR 35 mln.