(MILAN) – Hines European Core Fund (HECF), an investment fund managed by international real estate firm Hines, today announced the disposal of the 10,097-square-meter office property, Via Crespi, in Milan to BNP Paribas REIM, for an undisclosed price.
Via Crespi is an A-grade office, spanning seven floors, complete with underground parking for 170 vehicles, located in the Maciachini Business District of Milan. In 2012, Via Crespi was redeveloped in accordance with the highest international sustainability and quality standards obtaining an HQE rating, as part of a larger renovation program for the area. In total, the Maciachini Business Park comprises of 130,000 square meters of office, retail and green space which many international occupiers call their home. In addition, the site is well connected to local transport routes including direct metro access to Milan’s Central Station and the Duomo Cathedral.
Via Crespi has been in HECF's portfolio since 2014 and marked the fund’s first investment in Italy. It is fully let to one occupier, a world-leading company in the field of luxury goods, on a long lease.
Simone Pozzato, Managing Director and HECF Fund Manager, at Hines, commented: "The sale of Via Crespi is a successful example of our active core strategy to create long-term value through asset management. We successfully re-geared the existing lease in 2018 allowing us to secure a strong tenant for the long term. Following the impact of COVID-19, we are re-balancing our sector exposure and view this as the right time to crystallize a strong return for HECF’s investors. Proceeds have already been allocated to a new opportunity in the residential sector that we are looking to close during summer.”
Hines legal advisor was Ashurst.
The HECF is acknowledged throughout the industry as one of the best performing core property funds in Europe winning the MSCI European Property Investment Award for the best performing European balanced Fund in September 2020. It is also a leader in ESG best practice with the Fund named sector leader in the European diversified office/retail/non-listed core category in the Global Real Estate Sustainability Benchmark (GRESB) for the fourth year in a row. In addition, HECF won the 2021 PREA Real Estate Investment Management ESG award in the Open-End Fund category. Its achievements include a 100% sustainability certificate coverage across the portfolio, a 15.7% reduction in energy use and a 23.8% greenhouse gas reduction since 2016, for like-for-like assets. HECF has also transferred 90% of its buildings, where it has landlord control, to 100% renewable energy sources.
Hines is a privately owned global real estate investment firm founded in 1957 with a presence in 240 cities in 27 countries. Hines oversees a portfolio of assets under management valued at approximately $160.9 billion¹, including $81.7 billion in assets under management for which Hines serves as investment manager, and $79.2 billion representing more than 172.9 million square feet of assets for which Hines provides third-party property-level services. Historically, Hines has developed, redeveloped or acquired approximately 1,450 properties, totaling over 485 million square feet. The firm has more than 180 developments currently underway around the world. With extensive experience in investments across the risk spectrum and all property types, and a pioneering 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 16 cities as well as a presence in 62 cities in 13 countries. Hines oversees a portfolio of assets under management valued at approximately €26.3 billion of assets under management in Europe, including €21.9 billion for which Hines serves as an investment manager and €4.4 billion representing more than 3.8 million square meters of assets for which Hines provides third-party property-level services, in Austria, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Poland, Spain and the United Kingdom.
Visit www.hines.com for more information.
¹AUM includes both the global Hines organization as well as RIA AUM as of December 31, 2020.
About Hines European Core Fund (HECF)
The HECF was set up in 2006 with the aim of providing investors with a resilient income profile derived from a diversified portfolio of high-quality assets located in inner-city locations across major European cities.
As of Q1 2021 the HECF portfolio was 98.1% occupied with an aggregate fund value of c.€2.1bn. The portfolio of the Fund comprises 33 assets including forward commitments, invested in 16 city markets across nine different European countries.