Hines, along with Cale Street, a real estate investment firm backed by the Kuwait Investment Office, has finalized the investment into the Unione 0 lot as part of the “MilanoSesto” urban regeneration project, following the transfer of the lot by Milanosesto S.p.A. to the newly established “Unione 0” real estate fund, managed by Prelios SGR.
With an investment of €500m, the Unione 0 real estate fund begins the development of the first private lot covering approximately 250,000m². It forms part of the broader partnership project between Hines and Prelios that has enabled the relaunch of the biggest urban regeneration project in Italy and one of the largest in Europe, on a site spanning 1.5 million m² in Sesto San Giovanni, formerly home to the historical Falck Steelworks. As well as Hines being an investor for the development of Unione 0, Hines Italy acts as a strategic advisor and development manager for the whole MilanoSesto project, while Prelios, in addition to managing the Unione 0 fund, acts as asset and project manager for the entire real estate initiative.
As part of the masterplan by international architecture firm Foster + Partners, the seven Unione 0 buildings are designed by four excellent names on the Italian architecture scene: Antonio Citterio Patricia Viel (ACPV) will design the office spaces and a hotel; Barreca & La Varra the affordable housing units; Park Associati the student housing; Scandurra Studio Architettura the free-market residential units. Excavation works will begin in January, with construction works set to get underway by the end of the year. The estimated turnover for the project upon completion - scheduled for 2025 - is over €1bn, with the creation of over 2,100 jobs.
There will also be a fundamental emphasis on environmental sustainability and energy efficiency, thanks to LEED® and WELL certifications and the use of innovative materials, in keeping with the principles of the circular economy. The energy requirements of the area encompassing Unione 0 and the City of Health and Research will be 30% lower than if traditional systems had been used, avoiding the emission of 5,500 tons of CO2 into the atmosphere.
“We believe firmly in this highly strategic and challenging project and, from the very first day, our team has been working with great passion and determination towards the goal of creating a new sustainable and inclusive urban hub, to reactivate a territory that has lain dormant for decades for the benefit of all communities. The presence of Intesa Sanpaolo, right from the early stages of the project, has been essential in ensuring that this important opportunity for the whole country, could be put into practice,” commented Mario Abbadessa, Senior Managing Director & Country Head at Hines Italy. “As well as reaffirming our long-term industrial approach and consolidating our living strategy, we intend for MilanoSesto to serve as a shining example of our new concept of sustainable real estate development for the long term, with the goal of providing a positive impact at a local and national level. Our aim is to make a tangible contribution to the growth and economic development of Sesto San Giovanni and the Milan metropolitan area, by way of a new ethical urban regeneration model. Above all else, MilanoSesto will focus on the creation of social infrastructure: no real estate project can claim to be long-lasting and successful if it is not socially sustainable for generations to come."
“The financial commitment by Hines and Cale Street into Unione 0 is testament to the excellent teamwork and commitment shown by Prelios and Hines over the last two years, and has enabled the relaunch of such an important and qualifying project," said Luigi Aiello, General Manager Corporate & Business Development of the Prelios Group. "From the very first discussions we had on this ambitious project, we understood its great potential and strong social appeal. With reference to this operation, we are proud that Prelios has proven to be an active reference point and a leading strategic player in major real estate and financial transactions and an effective link between the various stakeholders in the sector. It should also be noted that all this has been made possible thanks to the support of Intesa Sanpaolo and its top management, who believed in the relaunch of this great project.”
