The Italian fund management arm of US property company Hines has announced the first closing of its Italian Porta Nuova Varesine property fund, which will take control of EUR 900 mln worth of assets in the Italian city of Milan.
The Italian fund management arm of US property company Hines has announced the first closing of its Italian Porta Nuova Varesine property fund, which will take control of EUR 900 mln worth of assets in the Italian city of Milan.
The American developer, through its local Varesine Srl joint venture vehicle, has transferred the Varesine redevelopment site to the new fund, receiving in exchange EUR 73.5 mln worth of units in the fund. According to news reports in the Italian media, investor Varesine Sarl has also committed to take fund units worth a total of EUR 91.2 mln, while institutional investors in the fund include Fondiaria, Galotti, Premafin Immobiliare, Milano Assicurazioni as well as the Monte Paschi Hines Real Estate Crescita fund and the Hines European Development Fund.
Hines bought Le Varesine site, offering a gross area of 82,000 m2, in a partnership with Galotti in 2006. Located in Milan, Varesine consists of 12 buildings including six for residential accommodation and three for office and retail use. It also includes around 1,500 parking spaces. A consortium of banks led by Eurohypo, Unicredit, Popolare Milano and MCC is financing the EUR 700 mln of debt involved in the operation.
Together with Hines' previously-launched Porta Nuova Garibaldi fund, the new fund brings Hines' total investment in the country to some EUR 1.85 bn, making Hines the largest manager of property development funds in Italy. The company said it is also about to create two special funds dedicated to Italian institutional investors.
