AM NV (formerly Amstelland MDC), developer of urban centres, retail centres, offices and residential areas, has taken a major step for establishing its presence in the Italian market by entering into a joint-venture agreement with Lombardia based CDS Group.
The agreement signed between AM Development, a subsidiary of AM, and CDS holding aims at the joint development of retail projects in Italy. Several sites are already under analysis and construction of the first joint project is expected to start this year. The distribution of shares between participants will be on average 75% for AM and 25% for CDS Group, although different conditions may apply to special projects.
Chances for design & development
An analysis of the Italian retail market has confirmed that there are very good perspectives for a quality-oriented developer, who wants to look at commercial real estate not purely from a construction point of view, but especially from a design and urban integration approach. The market is lacking such a player, and the several design & development concepts of AM which were presented to land owners, city planners and other public authorities were welcomed as being highly innovative and potentially very successful.
AMâs decision to team up with a local partner is based on the market being very protective of its construction and development companies and on the complex urban planning regulations, which can cause a foreign developer without local connections to face very long and uncertain planning schedules. The joint venture reflects the complementary nature of the fields of specialization of AM and CDS. AM Development will bring to the joint-venture its unique approach to concepts, design and development, its vast knowledge of cross-border property development and its extensive network of contacts, both with international retailers and institutional investors. CDS Group, with its valid experience in the local Italian market, its understanding of urban planning rules in the different Provinces, its reputation with public urban authorities and its construction capability will surely play a fundamental role in speeding up the expansion plans of this newly created partnership.
Source: AM NV