Cale Street, the opportunistic investment and finance firm backed by the Kuwait Investment Office, has joined the consortium planning to develop MilanoSesto, Italy’s largest urban regeneration project.
Cale Street and Hines, the 1.5 million m2 project’s development manager, have completed the signing of a framework agreement to invest €500 mln in the first phase via a dedicated fund.
Hines’ equity investment has been reported as €250 mln while Italian bank Intesa Sanpaolo Group is providing more finance having had exposure previously to the long awaited project.
‘Unione Zero’ is slated to be the first parcel to be developed on the Milan site, with 250,000 m2 of development due to start next year, subject to completion of infrastructure permits and remedial work.
The JV partners are working with Prelios Group which is the project and fund manager and Milanosesto SPA which is the owner of the area.
Cale Street, led by former Goldman banker Ed Siskind, has been busy this year, with deals in France, Boston in the US and in London where the firm stepped in to refinance a new hotel in Marylebone.
The MilanoSesto project will redevelop the former Falck Steelworks of Sesto San Giovanni in north east Milan to a masterplan by Foster + Partners. Investment promised in the area includes a new railway station to be built by June 2023 and a medical complex called the City of Health & Research formed by the Besta Neurological Institute and Tumor Institute.
It will include new residential areas, offices, retail and hospitality and a 45 hectare park.
