Patron Capital, acting together with Bluestone and FREO Group, has signed the preliminary contract for the purchase of a development site in via Egidio Folli 41, 43 and 45 in the Milanese district of Lambrate. The JV plans to develop a new 9,000m² residential complex of 100 units with garages and cellars for a total gross development value of circa €40m.
The building permit request will be filed by the JV during the second quarter of 2022 and works on-site will start at the beginning of 2023 with the demolition of two old residential buildings, as well as the former "Cinelli" bicycle factory. Studio Scandurra has been already appointed by Patron Capital, Bluestone and FREO for the project’s design. This is the second transaction for the JV, which aims to invest approximately €250m in the acquisition and development of residential projects in Milan and follows the acquisition of a former light industrial site, located at via Folli 24 in the Lambrate district.
Matteo Busa, Investment Director and Partner at Patron Capital, said: “Our latest deal in Milan, a city that is central to our Italian investment strategy, demonstrates our ability, alongside our partners Bluestone and FREO, to identify and execute attractive off-market transactions. We are already working on further deals and expect to significantly expand our portfolio in 2022.”
Paolo Rela, Head of Asset Management Italy at FREO, said: “This new project continues our commitment alongside our partners to ESG-led urban regeneration in Milan. Replacing abandoned buildings with new high-quality developments will significantly contribute to the transformation of this part of the city, which is set to benefit from significant private and public investment in the coming years to become one of the most interesting and dynamic areas in Milan.”
Andrea Bezziccheri, Chairman at Bluestone, affirmed: “We proudly unveil a new step of the partnership with Patron Capital and FREO that will allow us to redevelop another area of the Lambrate district, where other exciting urban regeneration projects are taking place. The deal confirms the strength of the Milan residential market and the investors’ appetite for sustainable real estate projects, in line with market demand for energy-efficient homes located in suburban areas with good services, plenty of green space and efficient transport connections to the city centre.”
