Hines has acquired a flagship high street retail property on Via Torino in Milan for €52 mln, on behalf of the Hines Pan-European Core Fund (HECF).
The 3,300 m2 building is located on Milan's prime mass market hight street, situated around 500 metres from Piazza Duomo and Corso Vittorio Emanuele.
'The high street market continues to be a very interesting market particularly in top locations like the center of Milan which continues to show resilience to the potential instability in a challenging market,' commented Mario Abbadessa, Italy country head for Hines.
The building's prime tenant is Italian shoemaker Geox, which established this location as its Italian flagship more than five years ago.
This transaction is the fifth acquisition by Hines in Italy since the beginning of the year following the purchase of historical buildings on Milan’s Via Dante, Via Cordusio, Via Broletto and Via Tornabuoni in Florence. The assets bought on Via Torino and Via Tornabuoni represent the third assets owned by HECF in Italy following the acquisition of the Richemont’s group Italian HQ building on Via Crespi, Milan, last year.
Since entering Italy in 1999, Hines has developed 20 projects, including the landmark mixed-use development Porta Nuova in Milan, which includes 140,000 m2 of office, 125,000 m2 of residential and 40,000 m2 of retail and cultural venues.
'Italy continues to be an attractive target market for HECF with a resurging high street retail sector that is poised to develop strongly over the years to come,' Peter Epping, Fund Manager of HECF. 'As one of the fashion capitals of the world, Milan stands out as its most interesting city market for retail properties. With its modern retail-orientated design in this excellent location and the strong positioning of Geox, it is a compelling investment for HECF.'
Freshfield Bruckhaus Deriger provided legal advice, while PWC advised Hines on financial matters. Savills also advised.
