BNP Paribas Real Estate (BNPPRE) has finalised the acquisition of a multi-storey carpark in Milan dubbed Garage Traversi with a plan to transform it into a mixed-use destination.
BNPPE acquired the building, valued at €70 mln, as the first transaction for HITA1, a closed-end institutional real estate fund targeting value-add properties in Italy's main cities backed by the Italian arm of UK real estate investor Hayrish.
The vendor of the building at Via Bagutta 2 was Banco Popolare.
The 5,000 m2 Garage Traversi is located in a prominent city centre position on the corner of Piazza San Babila and Corso Venezia. Constructed in 1938 on a plot deemed too small for residential use, the building features a polygonal structure and was the first in Milan to be built from reinforced concrete.
The carpark closed in 2003, and was bought by real estate developer Luigi Zunino of Risanamento in a debt restructuring deal with Aedes for around €90 mln with plans to turn it into a department store, and then a modern art gallery. In 2010 the asset passed to Aedes' creditor Banco Popolare via default.
Banco Popolare made enquiries about refurbishing the building but eventually left it in its current state.
The current plan is to invest up to €30 mln to transform the property into a modern mixed-use scheme. 'In recent months we have worked extensively together to Banco Popolare in order to complete the purchase of Traversi Garage. We care about this transaction as it fits into the broader decision to extend our presence in operations to recuperate and transform commercial properties in major metropolitan areas of Italy,' said Ivano Ilardo, CEO of BNP Paribas REIM Italy.
