Generali trades stakes with Allianz in Milan's Citylife project

Italian insurance giant Generali has agreed to buy a 33% stake in Milan's CityLife real estate project from German competitor Allianz, becoming the sole shareholder of the massive redevelopment project in Milan.

As part of the deal, Allianz has agreed to purchase the Isozaki Tower, one of three landmark skyscrapers that are part of the project, and part of the residential district for a combined €367 mln.

The purchase of the Isozaki Tower will take the form of a transaction on a future asset, with payments to be made at closing and on a percentage-of-completion basis.

After completion of construction, Generali and Allianz plan to occupy the Hadid and Isozaki towers. Closing is expected to take place by the end of 2013.

'This is a very important agreement, because it establishes the road map for the realisation of the next stages in the project and enables us to reduce the company’s leveraging,' said Alberto Minali, Generali Group CFO. 'Milan has always played a strategic role in the group’s real estate investments and the investment in this project, with its unique design, technology, operating and energy efficiency features, is a further demonstration of that.'

CityLife is the most important urban redevelopment project in Milan covering a surface of 360,000 m2 in Milan’s old Fiera district. CityLife will be an entirely pedestrian area, with apartment blocks, offices, shops and a 170,000 m2 public park.

The project has been designed by three world-famous architects, Zaha Hadid, Arata Isozaki and Daniel
Libeskind, after whom the three towers in the centre of the district are to be named.

The 50-storey Isozaki Tower has already reached the 25rd floor. The foundations are being excavated for the Hadid Tower, while the Libeskind Tower is at the design stage.

Work on the residential district is nearing completion and the first occupants moved into the Hadid and
Libeskind apartments in October. The first section of the public park - a 50,000 m2 area adjoining Piazzale Giulio Cesare - will be opened in the first week of December.