US developer-investor Hines has announced three investments in the Milano Lambrate, Navigli and Bocconi southern areas of Milan to build 1,400 new sustainable rental apartments, in partnership with PGGM, the Dutch pension fund manager.
The residential units will cater to various groups including young professionals, couples, families with children, and seniors. The units will adhere to the highest international ESG credentials and will have gyms, coworking, and communal spaces to improve the wellbeing of residents and the local communities.
The projects include an urban regeneration plan located in the heart of Lambrate and two real estate portfolios situated in Milan’s southern quadrant between Navigli and Porta Romana. Hines is the developer and co-investor for the projects.
The projects
The Milano Lambrate project will revive over 40,000 m2 that has been derelict for more than 10 years. The development will include eight new buildings with 400 state-of-the-art residential units alongside a public park with facilities covering 20,000 m2.
The investment, made by the ‘Milan Living Fund BTR 2’ alternative real estate fund managed by Savills Investment Management SGR, was first announced by PropertyEU last week.
The second investment was secured through the newly established Milan Living Fund BTR 1, managed by Savills Investment Management SGR S.p.A., and includes five properties located between the Navigli area and Porta Romana in Via Balduccio da Pisa 7, Via Carlo Bazzi 51, Via Pestalozzi 11, Via Ettore Ponti 8 and Viale Richard 1. The areas cover a total of over 40,000 m2 in which approximately 450 new rental apartments will be built while a portion will be used for offices.
In line with the goal of expanding Hines’ residential platform south of the city, the firm is continuing to invest with the Milan Living Fund I managed by Antirion SGR in a portfolio of properties in Via Lampedusa, 11/A - 13, in the Bocconi area, a part of the city characterised by high residential demand and undersupply.
The acquired portfolio includes nine buildings that are partially occupied by offices. The assets will be converted into 550 build-to-rent units and will be located in a historical residential housing area with many services and convenient connections to the city centre.
Hines is planning to create a large green area covering more than 20,000 m2 with 150 trees across the perimeter of the nine buildings. The three projects will follow international standards of sustainability and energy efficiency in line with Hines’ ESG goal to achieve the highest possible energy certification targets and net zero carbon emissions. The projects in the Lambrate and Bocconi areas have been designed to reach the Leed Gold target, while the buildings in the Navigli area are aiming for Class A energy certification.
With these projects, the residential investments made by Hines in Milan rise to over €2 bn, confirming its commitment to the living sector. Milan’s population is expected to grow by 8.3% between 2020 and 2030 with significant unmet demand.
‘The finalisation of these investments represent a step forward on our journey of expansion and diversification into the living sector in Milan,’ explained Mario Abbadessa, senior managing director & country head of Hines Italy.
