Hines and Universal-Investment have acquired an iconic real estate complex in Via Broletto, Milan's upmarket office street, with an approximate value of €50m for an institutional real estate fund administered and managed on behalf of Bayerische Versorgungskammer (BVK). No external broker assisted with the transaction and Finint SGR was the seller. This transaction is the fourth investment by Hines in Italy since the beginning of the year, following the purchase of a historical building on Milan's Via Dante two months ago, an iconic building on Piazza Cordusio and a trophy asset in Florence.
The 11,000m² 15th-century complex is located in the heart of the historical centre of Milan in the fashion district of Brera, adjacent to Piazza Cordusio and 500 meters from Piazza Duomo. The complex served as the historical headquarters of Gucci in Milan and is a prime office space for institutional tenants.
This transaction is the fourth acquisition by Hines and Universal-Investment for the BVK mandate, having been appointed late last year to execute a €1.3 billion investment programme targeting prime high-street retail property across Europe. The acquisition follows the purchase in March of another flagship building in the historical centre of Milan, Via Dante 16. Further acquisitions of prime high-street retail assets were previously made in Oslo’s Karl Johans Gate and Glasgow’s Buchanan Street.
Mario Abbadessa, managing director and Italy country head for Hines, said, "The investment in Via Broletto reinforces the intention of Hines to establish a long-term platform in Italy focused on investment in existing assets, located in permanent prime locations, to be re-used through a value-added approach."
Paul White, Hines managing director - investment management, added, "This elegant trophy asset is ideally located to offer prime premises for Milan's most prestigious office tenants. We are delighted to have added the quality of Via Broletto to the wider Pan-European real estate investment portfolio managed by Hines, on a discretionary basis and through an off-market transaction."
Since entering Italy in 1999, Hines has developed 20 projects in the country, including the landmark mixed-use development Porta Nuova in Milan, which includes 140,000m² of office, 125,000m² of residential and 40,000m² of retail and cultural venues.
