Doughty Hanson sells Maciachini office development in Milan for €380m (IT/UK)

Doughty Hanson & Co Real Estate has sold Maciachini Center, the premier new office location in Milan, to Milareal Sarl, a Luxembourg-based investment vehicle, and Via Imbonati Srl, an Italian property developer, for a total of €380 million.

Doughty Hanson acquired the prime redevelopment site in 2003. Maciachini has been developed through a phased programme involving speculatively constructed and build-to-suit buildings under the firm's Real Estate Solutions programme. It comprises approximately 95,000 m² of new buildings for offices, retail shops, bars, restaurants and cafes, a fitness center and secured parking for 1,300 cars.

Located in the heart of Milan's northern growth axis, Maciachini consists of four phases:

  • Phase 1: Completed and comprising 27,000 m² of office space. Tenants include Montblanc, Mattel, Universal Music, Macquarie Bank and 2S Banca.
  • Phase 2: 29,000 m² of office space pre-leased to Zurich Italia for its Italian headquarters. Zurich analyzed 22 potential sites before choosing Maciachini. Delivery of the building is scheduled for June 2008.
  • Phase 3: Over 9,000 m² of retail and fitness space with pre-leases to tenants including Virgin Fitness, Panini Giusto, Autogrille and Europa Risorse
  • Phase 4: 30,000 m² of office space to complement Phase 1. Design currently being finalized.

Doughty Hanson & Co Real Estate worked with BPD Property Development Srl, the Fund's Italian partner, to develop Maciachini and the project has been managed by Europa Risorse Srl, an operating affiliate of Doughty Hanson & Co Real Estate and of BPD Property Development Srl.

John Howard, Head of Doughty Hanson & Co Real Estate, said: "Maciachini has set the gold standard for high-quality office developments in Milan. We have attracted first-class, international tenants to Maciachini as part of our Real Estate Solutions programme and significantly leased the entire first three phases of the development. Having initiated and progressed this high-standard development, it is now an opportune moment for us to sell Maciachini to Milareal Sarl, which is acquiring a superior, stable asset and to Via Imbonati Srl, which will develop the last phase of this exciting location."

Maciachini was an investment from Doughty Hanson & Co Real Estate's first Fund.

Doughty Hanson & Co Real Estate has a strong track record in Italy, where it has been active since 1999, and many of the Fund's investments have involved Real Estate Solutions for corporates.

Previous investments include:
  • the Bodio Center, where Doughty Hanson transformed a derelict site into the leading business centre in Milan, comprising 65,000 m² of high-standard office space. The landmark office development was sold to German open end fund, DEGI, in September 2003 for more than €200 million; and
  • the new Milan headquarters for L'Oréal Italia, transforming an abandoned building into a landmark property. Doughty Hanson acquired the derelict site in February 2001 and created significant value by transforming it into a 33,000-m² complex of superior office space for L'Oréal, one of the world's premier brands. The building was sold to one of the leading German open-ended funds, WestInvest, for more than €70 million.

Doughty Hanson & Co Real Estate and Europa Risorse are also completing Orti Antichi, a high-quality residential development of 110 apartments in an historical quarter of Milan.

Doughty Hanson closed its second real estate fund, Doughty Hanson & Co European Real Estate II, last year with commitments of €590 million. This Fund has now committed to 10 investments, representing €291.3 million of equity or 49.4% of the Fund, including three investments in Italy for high-quality residential developments at sites in Rome, Brescia and Padua.

Source: College Hill

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