Impregilo to make an offer for Milan's City Life contract

Italy's construction group Impregilo plans to make an offer to buy a 50% interest in the contract to develop the massive City Life development site on the ground of the former trade fair in Milan.

Announcing Impregilo's annual results, CEO Alberto Rubegni said that the group has been approached as a potential buyer of the contract to develop the area and is studying an offer which will be presented in the near future. The financial details were not disclosed.

The development contract for City Life is currently 50%-owned by Lamaro of the Toti group while the remaining 50% is held by Immobiliare Lombarda of the Ligresti family. While the latter wants to retain its stake, the Toti Group has made public its decision to sell its interest in the project.

The costs for the construction of City Life are estimated at around EUR 1 bn.

The City Life project is currently majority-owned by institutional investors Allianz, Generali and Fondiaria, which each own a 27% stake. Lamaro, the owner of the remaining 20%, is looking to sell its interest in the development as well.

Immobiliare Lombarda and Lamaro won the international tender for the redevelopment of the Fiera Milano in 2005 with an offer of EUR 523 mln. Designed by architects Arata Isozaki, Daniel Libeskind, Zaha Hadid, and Pier Paolo Maggiora, the project involves the construction of three skyscrapers called Il Dritto (The Straight One), Lo Storto (The Twisted One) and Il Curvo (The Curved One). The scheme is due for completion in 2015.