Hines buys Milan asset in €55m deal for BVK mandate

US developer-investor Hines has joined forces with Italian asset manager Idea Fimit to acquire a seven-storey retail and office building at via Dante 16, one of Milan’s main high streets, for €55 mln.

The 6,000 m2 19th century building located in the core of the City of Milan is almost fully let, and will undergo redevelopment to create a flagship high-street store with office space at the higher floors.

This transaction was carried out by Hines by German pension investor Bayerische Versorgungskammer (BVK). Earlier this year BVK mandated Hines with a €1.3 bn separate account programme targeting prime high-street retail property across Europe.

The Milan acquisition follows the purchase of a property on Oslo’s Karl Johans Gate high-street in late 2015. The asset was secured in a sale and leaseback transaction from Landkreditt Bank for €52 mln.

'Italy has long been and continues to be a strategic market for Hines. The closing of this transaction helps to further strengthen our retail and expand our geographical reach across Italy,' said Michael Topham, CEO of Hines Europe.

Lars Huber, CO-CEO of Hines Europe, added: 'Italy represents an attractive market with significant potential. The quality of the building coupled with its excellent location and diverse income profile from both retail and office tenants make this asset a compelling proposition for BVK.'

Hines' Italian office is run by Mario Abbadessa, who currently is based partly in London and in Milan. He spent five years with Hines’ acquisition team in Milan and as a fund manager with Hines Italia Sgr. Hines recently sold its interests in its regulated Italian fund management business to Manfredi Catella, who previously served as Hines’ country head for Italy.

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.

GVA Redilco acted as the advisor for the seller, legal support was provided by Apollo & Associati and DLA Piper with Garretti e Associat providing the design brief. CBRE also advised.