(MILAN) – Hines, the global real estate firm, is expanding its office portfolio with an investment into a corporate headquarters refurbishment project in Milan, located at 25 Via Tortona. The €200 million investment will be finalized in partnership with an international institutional investor through the acquisition of 100 % of the shares of a fund managed by BNP Paribas REIM.
The project, which consists of four buildings covers a total surface area of 30,000 square meters. Hines will act as the developer and co-investor in the planning and authorization phase until construction work commences in early 2024. The project is expected to complete in the first half of 2026.
This investment will see Hines create the first office campus in the center of Milan, which is designed to meet the needs of today’s increasingly fast-moving and digitalized environment and provide flexible workspaces that benefit the well-being of occupiers employees.
The main ambition is to create a space that encourages people back to the workplace and stimulates interaction between teams, with dedicated spaces for food and retail units and the introduction of 24/7 services that provide a range of activities. The office space will support knowledge-sharing between occupiers by enhancing workspace to increase collaboration and optimize levels of performance. The refurbishment will also connect internal and external spaces, which includes extending the entrance on Via Tortona by restructuring the internal courtyard, as well as the extensive terraces on the top floor to encourage people to meet and talk.
The project will be carried out in accordance with the highest international standards of environmental sustainability and energy efficiency, targeting a LEED Platinum Certification. In line with the Hines approach, a set of ESG criteria will inform the process, which ranges from the choice of construction materials used and the creation of a space that promotes a culturally active and integrated community.
The project is in a strategically-located neighborhood which, in recent years, has become an innovative and high-tech district. Home to Milan’s Design Week, the area has developed a strong identity and houses major fashion brands, including Ermenegildo Zegna and Armani, as well as arts and culture exhibition centers including Mudec, the Museum of Cultures of Milan.
It will also benefit from the arrival of the blue line via Milan’s metro which will guarantee its connection to the rest of the city, as well as the redevelopment of the Porta Genova area which is set to become a new green space for Milan.
In recent months, the demand for office space in Milan has continued to grow, especially for quality buildings that boast high standards of sustainability in areas of the city such as the district surrounding Via Tortona.
Mario Abbadessa, senior managing director and country head of Hines in Italy, comments “This investment marks an important step for Hines as we continue to increase our portfolio in the growing office sector in Italy following projects in Piazza Cordusio and Via della Spiga. The project will see Hines create an innovative design that responds to the evolving needs of future occupants by planning the first office campus in Milan where social and sustainable requirements are placed at the heart of the development.”
Advisers on the transaction include: Freshfields Bruckhaus Deringer, DLA Piper, BIP, Studio Notarile Cortucci, EY, Yard Reaas Group, Dils, Colliers, Avalon, Bcube, Mangoni Studio and ACPV ARCHITECTS Antonio Citterio Patricia Viel.
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