US privately-held developer-investor Hines has committed an €80 mln investment to create a new 16,000 m2 student housing scheme in the former Manifattura Tabacchi area, in the heart of Florence’s innovation hub.
The investment will be made on behalf of the Hines European Value Fund (HEVF 2) Italy D fund, managed by Prelios SGR.
The Manifattura Tabacchi regeneration area is strategically situated in the northwest corner of Florence, just 10 minutes from the historic centre and the Santa Maria Novella station, and 15 minutes from the airport. The area will benefit from the new T4 tram line which, by the end of 2024, will link the Manifattura Tabacchi area to the centre of Florence, shortening commute times to just a few minutes.
The wider regeneration area was conceived in 2016 by way of M.T.- Manifattura Tabacchi S.p.A. a joint venture between PW Real Estate Fund III, a fund managed by Aermont Capital, and by CDP Immobiliare - a subsidiary of state-owned Cassa Depositi e Prestiti Group. Spanning 110,000 m2 in total, the former industrial area is being redeveloped through the construction of shared spaces, co-working hubs, cultural areas, offices, apartments, and a hotel, representing one of the most significant urban regeneration projects in Italy.
Closed for twenty years, the project HEVF 2 has acquired is situated within the Manifattura Tabacchi regeneration area and consists of a rectangular block with three structural bays built between 1954 and 1956 carrying a modernist style. Originally used as a sales warehouse, it will be completely redeveloped, including new student housing to accommodate more than 400 students.
A fifth floor will also be constructed to expand the space available to students with additional rooms and shared common areas. Upon completion in 2024, the project expects to achieve LEED Gold certification.
Paul White, senior managing director and HEVF 2 fund manager at Hines, said: ‘We are very pleased to have committed an €80 mln investment to create a new student housing scheme in Florence. This marks our first investment in this sector on behalf of HEVF 2 and the asset was acquired off-market.’
‘We at Hines are extremely satisfied with this investment in Florence, and it once again demonstrates our commitment to the expanding student housing sector throughout Italy,’ commented Mario Abbadessa, senior managing director & country head of Hines Italy. ‘This project represents the third real estate project in Florence for Hines, after investments in Tornabuoni and Corso Italia, confirming Florence’s ability to attract international investors and its significance as a cultural hub.’
