Hines fund buys high-street retail asset in Florence for €78m

The 5,500 m2, 13th-century building is located on Via Tornabuoni 3 in the historical centre of Florence, about 500 metres from the famous Piazza della Signoria and Ponte Vecchio. Tornabuoni 3 is fully leased, and the retail component is occupied by international brands.

This is the second acquisition by Hines in Italy since the beginning of the year, following the purchase of a historical building on Milan’s Via Dante in March. 

Mario Abbadessa, head of the Hines business in Italy, said, 'In addition to Milan, the high street retail market of Florence represents a compelling alternative for Hines' expansion in Italy as well as other cities characterized by strong tourist flow such as Rome and Venice.'

Peter Epping, fund manager of HECF, added, 'Italy continues to be an attractive target market for HECF with significant potential and Florence is one of its most interesting city markets for retail properties. The quality of the building coupled with its excellent location and tenant profile make this property a compelling proposition for HECF.'

Progenia acted as the advisor for the deal, legal support was provided by Freshfield Bruckhaus Deriger. CBRE also advised.  

Since entering Italy in 1999, Hines has developed 20 projects in the country, including the 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.

Hines featueres in 21st place in PropertyEU's Top 100 Investors ranking based on European transaction volume in 2015. Hines reported almost €2.2 bn of acquisitions and €1.8 bn of disposals last year in Europe.