(MILAN) – Hines, the global real estate firm, and Allianz Real Estate, one of the world’s largest real estate investment managers, have finalised an €80 million investment in the Urban Mile fund managed by Blue SGR. The investment sees the acquisition of 110,000 square metres of brownfield land in Via Rubattino in Milan for the construction of an innovative logistics hub designed for last-mile deliveries and electric mobility.
The new facility will be one of the largest logistics platforms for the city of Milan and will be built over the next 36 months. Located in a strategic position, it is near the eastern ring road, Linate airport and the Segrate intermodal terminal, which connects Italy with Northern Europe, including Germany, Belgium and The Netherlands, and Southern Italy.
The logistics facility will play a key role in supporting e-commerce-related deliveries as the need for loading bays near urban areas grows. As a result of having an integrated system, it will become crucial in integrating heavy goods vehicles into local transport.
The facility also includes innovative solutions to promote electric mobility and has been designed to facilitate and promote sustainable travel such as cycling in the surrounding area to further contribute to the reduction of emissions.
In line with both Hines and Allianz Real Estate’s decarbonisation targets, the project will be carried out in accordance with the highest international standards of sustainability and safety with a strong focus on its environmental impact. It has been designed to comply with Carbon Risk Real Estate Monitor (CRREM) metrics, which aim to accelerate decarbonisation and increase the resilience of commercial buildings to climate change. It will include photovoltaic panels, filtering paved surfaces for water drainage, low-consumption LED lighting, high-performance cladding to dissipate external heat and maintain the internal temperature and tree-lined environmental corridors to limit the impact on the surrounding environment. It is also expected to be awarded a BREAAM ‘Very Good’ certification upon completion. The already reduced CO2 emissions will also be offset by the creation of an internal green area with drainage functions covering over 22,000 square metres.
Mario Abbadessa, senior managing director & country head of Hines in Italy, comments: “This is our second investment in the logistics sector this year and represents our first last-mile facility for Hines in Milan. By partnering with Allianz Real Estate on this facility, Hines can further strengthen its presence in the logistics market in Italy and develop projects that incorporate innovative techniques and have a positive, direct impact on urban cities and the people that reside in them.”
Donato Saponara, Head of Investments West Europe - Country Head of Italy, Allianz Real Estate, said: “As the demand for last-mile logistics facilities continues to grow in such a competitive market, we are delighted to participate in this investment that showcases the strength of our team, our local network and expertise, and our market proposition. Our focus is on building our exposure to logistics alongside prime partners, developing cutting edge facilities that incorporate our approach to ESG alongside addressing the shortage of supply.”
The construction of this logistics platform is part of a much broader urban regeneration project that involves the whole Ex Innocenti area, which hasn’t been redeveloped for over 10 years. The project is part of the implementation of the Grande Funzione Urbana Rubattino, envisaged by the PGT of the Municipality of Milan, which covers over 300,000 square meters. In this urban regeneration plan important public amenities will be included, such as the “Magnifica Fabbrica” della Scala which will host workshops and exhibition spaces and the planned extension of Lambretta Park, which will spread across circa. 70,000 square metres.
Hines has established a logistics portfolio of approximately 700,000 square metres which, in addition to Via Rubattino, includes Vigasio logistics park in Bologna, the recent portfolio in Northern Italy leased to Snatt Logistica Group, as well as three sites in Tortona, Montichiari and Brescia, which will span over 100,000 square meters of Class A space, and will finish construction in the first half of 2023.
Allianz Real Estate’s global exposure to the logistics sector was EUR 11.6 billion, or 13.8% of its global assets under management, with the largest allocation in Europe at EUR 5.8 billion as at the end of December 2021. In Italy, the past three years have seen a number of significant transactions which have brought the Italian logistics portfolio in excess of EUR500 million in assets under management. For logistics, the focus continues to be prime assets offering long-term value, particularly for last-mile properties or in close proximity to major transportation corridors and near gateway cities such as Milan and Rome.
Advisors on the transaction include: EY, LED Taxand, Gianni & Origoni, YARD REAAS and Dils. Todarello & Partners dealt with urban planning and SFRE is the architecture firm.
About Hines
Hines is a privately owned global real estate investment firm founded in 1957 with a presence in 285 cities in 28 countries. Hines oversees investment assets under management valued at approximately $90.3 billion¹. In addition, Hines provides third-party property-level services to 373 properties totaling 114.2 million square feet. Historically, Hines has developed, redeveloped or acquired approximately 1,530 properties, totaling over 511 million square feet. The firm currently has more than 198 developments underway around the world. With extensive experience in investments across the risk spectrum and all property types, and a foundational commitment to ESG, Hines is one of the largest and most-respected real estate organizations in the world.
Since entering Europe in 1991, Hines has grown its European platform to include offices in 17 cities as well as a presence in 60 cities in 14 countries. Hines oversees investment assets under management valued at approximately €24.5 billion and provides third-party property-level services totaling 4.3 million square metres in Europe, in Austria, Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Poland, Spain and the United Kingdom.
Visit www.hines.com for more information.
¹Includes both the global Hines organization as well as RIA AUM as of 31 December 2021
About Allianz Real Estate and PIMCO
Allianz Real Estate is a PIMCO Company, comprising Allianz Real Estate GmbH and Allianz Real Estate of America and their subsidiaries and affiliates. It is one of the world’s largest real estate investment managers, developing and executing tailored portfolio and investment strategies globally on behalf of a range of global liability driven investors, creating long-term value for clients through direct as well as indirect investments and real estate financing. The operational management of investments and assets is performed out of 17 offices in key gateway cities across 4 regions (West Europe, North & Central Europe, USA and Asia Pacific). For more information, please visit: www.allianz-realestate.com. PIMCO is one of the world’s premier fixed income investment managers. With its launch in 1971 in Newport Beach, California, PIMCO introduced investors to a total return approach to fixed income investing. In the nearly 50 years since, the firm continued to bring innovation and expertise to our partnership with clients seeking the best investment solutions. PIMCO has offices around the world and 3,000+ professionals committed to delivering superior investment returns, solutions and service to its clients. PIMCO is owned by Allianz SE, a leading global diversified financial services provider.
Source: Allianz Real Estate, data as at 31st December 2021.
