Global real estate investor-developer Hines has purchased a mixed-use asset in Milan for €100 mln in a joint venture with a group of German pension funds.
The 12,000 m2 building on Via Orefici is located in the heart of Milan, some 500 metres from Piazza Duomo and is fully vacant, awaiting refurbishment.
'The historical centre of Milan and particularly the area surrounding Piazza Cordusio represents a prime location that has proved to be resilient to volatile market corrections. The asset itself is of particularly high quality, making this an attractive investment,' commented Mario Abbadessa, Italy country head for Hines.
The building was formerly the historical global headquarters of eyewear retailer Luxottica and will be converted into a mixed-use property with retail components on the lower floors and prime office space on the upper floors.
The transaction is the eighth investment by Hines in Italy over the past 15 months, following investments in historical buildings on Milan’s Via Dante, Piazza Cordusio, Via Broletto, Via Torino, Piazza Edison and Via Tornabuoni in Florence.
'Italy remains an attractive market with significant potential and we are delighted to add this latest trophy asset to our portfolio. Once redeveloped the asset will offer strong income potential through its office and retail elements and represents a strategic long-term hold for the company,' concluded Lars Huber, CEO of Hines Europe.
Hines was advised on legal matters by DLA Piper with PWC for tax, J&A for technical and GVA Redilco for commercial aspects.
