Hines, in partnership with IDeA FIMIT, has advised on the successful freehold acquisition of a seven-storey retail and office building on via Dante 16, one of Milan’s main high streets, for €55m by a company owned by the Bayerische Versorgungskammer (BVK) separate account mandate.
The 64,583ft² (6,000m²) 19th century building is located just south of the Castello Sforzesco in the core of the city of Milan and only a three-minute walk from Piazza Cordusio and the Galleria Vittorio Emanuele.
The property is almost fully let, and will undergo redevelopment to create a flagship high street store with office space on the higher floors. This transaction is the second acquisition by Hines for the BVK mandate, who appointed the investor earlier this year to execute a €1.3bn separate account programme targeting prime high street retail property across Europe. The acquisition follows the purchase of an iconic building on Oslo’s Karl Johans gate in late 2015 which was secured as a sale and leaseback from Landkreditt Bank for €52m.
Michael Topham, CEO of Hines Europe, said: “Italy has long been and continues to be a strategic market for Hines. The closing of this transaction helps to further strengthen our retail and expand our geographical reach across Italy.”
Lars Huber, CO-CEO of Hines Europe, added: “Italy represents an attractive market with significant potential. The quality of the building coupled with its excellent location and diverse income profile from both retail and office tenants make this asset a compelling proposition for BVK.”
Mario Abbadessa, Italy country head for Hines, said: “It is rare for major high street buildings of this quality to come to the market. Hines will continue to increase its advisory capabilities in the country in order to create a stable and long-term platform.”
Since entering Italy in 1999, Hines has developed 20 projects, 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.
GVA Redilco acted as the advisor for the seller, legal support was provided by Apollo & Associati and DLA Piper with Garretti e Associat providing the design brief. CBRE also advised.
