US investor and asset manager PGIM Real Estate has launched a joint venture with Italian real estate investor Cittamoderna to invest in the residential sector.
The long-term partnership will target properties, to be renovated or reconverted into residential use, with the aim of developing, renovating, managing the properties to be offered on the market.
The collaboration will focus on investments in major Italian cities, including Milan.
The JV’s first investment is an existing 7,000 m2 office building in Milan’s Navigli area, which is to be redeveloped into 100 residential units for sale.
Musie Bocrezian, head of Italy transactions of PGIM Real Estate, said: ‘The Italian residential market has an extremely lacking offer: in the main cities we observe a strong demand for buildings with high quality, efficient and sustainable standards, and this is precisely the objective of the "Our initiative. Our first investment will offer approximately 100 modern apartments in a strategic location in Milan, attracting new residents to the area. We are delighted to partner with Cittamoderna and look forward to developing our pipeline.’
Antonio Prezioso, CEO of Cittamoderna AM, added: ‘The main strength of the joint venture between PGIM Real Estate and Cittamoderna is the perfect combination between PGIM Real Estate's strong financial capacity and Cittamoderna's consolidated experience in the Italian residential sector.’
PGIM Real Estate and Cittamoderna were assisted by Shearman and Sterling, Todarello & Partners and Avalon, Dils acted as real estate advisor for the sales process, while Banco BPM financed the operation.
The Italian residential sector continues to experience strong investor interest in prime areas of major cities, thanks to a long-standing undersupply and strong demand for high quality, high energy performance assets.
