Hines and PGGM Invest in Via Della Spiga 26 in Milan

The 12,000 sqm asset will be transformed into a new luxury retail and office mixed-use building with a comprehensive reconfiguration and refurbishment project

(MILAN) — The Milan value-add joint venture between Hines, the international real estate firm, and PGGM, the large Dutch pension fund manager, has completed investment into Via della Spiga 26 in Milan, via a real estate fund managed by Savills Investment Management SGR SpA. The asset was previously owned by an institutional real estate fund managed by Invesco in partnership with Thor Equities, and was historically occupied primarily by Dolce & Gabbana.

The 12,000-square-meter building will undergo a comprehensive renovation program 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 asset can be accessed directly from Via Spiga as well as from Via Senato 19.

Hines and PGGM entered into a joint venture in 2017 to target high-street retail, office and mixed-use value add opportunities in Milan. The parties previously invested in a portfolio of three office buildings in late 2017.

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 into 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 continuing 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.”

The joint venture between Hines and PGGM was advised on this transaction by Legance on Legal & Financing aspects, by DLA Piper on regulatory aspects, and by PwC in relation to tax. Avalon acted as technical advisors while Ammlex acted as administrative and town-planning consultants. BNP Paribas is providing project financing for the investment.

About Hines

Hines is a privately owned global real estate investment firm founded in 1957 with a presence in 214 cities in 24 countries. Hines has approximately $120.6 billion of assets under management, including $66.5 billion for which Hines provides fiduciary investment management services, and $54.1 billion for which Hines provides third-party property-level services. The firm has 128 developments currently underway around the world. Historically, Hines has developed, redeveloped or acquired 1,348 properties, totalling over 444 million square feet. The firm’s current property and asset management portfolio includes 512 properties, representing over 223 million square feet. With extensive experience in investments across the risk spectrum and all property types, and a pioneering commitment to sustainability, Hines is one of the largest and most-respected real estate organizations in the world. Visit www.hines.com for more information.

About PGGM

PGGM is a cooperative Dutch pension fund service provider. Institutional clients are offered: asset management, pension fund management, policy advice and management support. On December 31, 2018 PGGM had EUR 211 billion in assets under management and was administrating pensions of 4.4 million participants.