The Milan value-add joint venture between Hines and PGGM has completed an investment in Via della Spiga 26 in Milan, Italy. The asset was previously owned by an institutional real estate fund managed by Invesco in partnership with Thor Equities, and was primarily occupied by Dolce & Gabbana. The c.12,000m² building will undergo a comprehensive renovation programme aimed at unleashing the great potential of the site, which is located in a historically prime location for luxury retail in Milan’s famous Quadrilatero della Moda, an area that will also benefit from a broader revitalization program. The purchase price was not disclosed.
Lars Huber, CEO of Hines Europe, said: “Hines and PGGM have a long-standing relationship, having been developing real estate together since the 1980s. PGGM is a trusted, highly respected partner and we are pleased to be extending our relationship through this deal.”
Mario Abbadessa, CEO of Hines Italy, said: “I’m very pleased with this acquisition. It allows us to invest in a prime asset in a historic luxury street of Milan that will benefit from a comprehensive revitalization plan. At Hines Italy, we continue to have confidence in the city of Milan, where we have long-time expertise and a solid track record. PGGM is an important investment partner of Hines with whom we truly enjoy working and we anticipate to continue co-investing in the future.”
Tinka Kleine, Senior Director Private Real Estate for PGGM, said: “Milan has become part of our city focused investment program because it offers great investment opportunities, both for achieving attractive financial returns and for improving the sustainability performance of well-located assets. Hines’ expertise in executing this strategy is key for our successful partnership and we look forward to creating a great new destination in Via della Spiga.”