US private equity firm Värde Partners has teamed up with Italian developer Borio Mangiarotti on a 150,000 m2 development project in Milan, representing an estimated investment of around €250 mln.
The deal is believed to one of the first real estate development joint venture ever signed in Italy between an international party and a local developer.
Värde Partners is taking a 90% share in the joint company while Borio Mangiarotti, the original owner of the site, will retain a 10% share. The JV will acquire the plot of land encompassing some 400,000 m2 for around €50 mln and will be seeded with an initial €60 mln of capital to bring forward the mixed-use project, known as Park West.
Designed by architects Mario Cucinella, the project comprises over 1,000 residential units, 30,000 m2 of offices and 10,000 m2 of commercial areas, all set within a major urban park.
Borio Mangiarotti had been evaluating options for the development of the site and in early 2017 appointed Vitale & Co Real Estate to advise on the selection of a financial partner to help fund the project.
'Park West is one of the most important and ambitious regeneration projects in the Milan suburbs,' commented Edoardo De Albertis, CEO of Borio Mangiarotti.
'We are already collaborating with Borio Mangiarotti on the redevelopment and conversion to residential use of an area at via Silva in Milan, as well as of buildings at viale Montello and via Canonica, originally bought from Cassa Depositi e Prestiti. This investment is a further indication of our strategic interest in Italy and particularly in the city of Milan,’ said Luca Malighetti, managing director of Varde’s Italian arm.
