(MILAN) – Hines, the global real estate firm, continues its focus on the living sector in Milan with three investments in the Milano Lambrate, Navigli and Bocconi areas to build 1,400 new sustainable rental apartments, in partnership with PGGM, the Dutch pension fund manager.
The residential units will cater to various groups including young professionals, couples, families with children, and seniors. The units will adhere to the highest international ESG credentials and will have gyms, coworking, and communal spaces to improve the well-being of residents and the local communities.
The projects include an urban regeneration plan located in the heart of Lambrate and two real estate portfolios situated in Milan’s southern quadrant between Navigli and Porta Romana. Hines is the developer and co-investor for the projects.
Milano Lambrate - 400 Residential Units
The Milano Lambrate project will revive over 40,000 square meters that has been derelict for more than 10 years. The development will include eight new buildings with 400 state-of-the-art residential units alongside a public park with facilities covering 20,000 square meters.
The investment, made by the “Milan Living Fund BTR 2” alternative real estate fund managed by Savills Investment Management SGR S.p.A., will contribute to the broader urban regeneration program of Milan’s Lambrate district, which is becoming one of the city’s most attractive destinations. Its proximity to the design district and the Politecnico di Milano gives it opportunities for development and expansion. The project aims to connect two districts in Milan, the predominately residential area in Via Bistolfi and the design and fashion area in Via Ventura.
A 3,000 square meter cultural hub will be created within the public park for socializing and promoting the local craftsmanship and entrepreneurship that have defined the Lambrate district. The area will have showrooms and workshops, incubators for young workers in the tech sector, and medical services for the community. The urban regeneration project aims to stimulate the lively nature of the district and contribute to boosting the lives of the young people who live there with a dedicated area for food and drink in planning. The aim is to create a new central point in Milan for collaboration and for people to meet-up and connect.
The district is well connected to the rest of the city with transport connections meters away including the underground, bus, and train stops. Also, the eastern ring road and Milan Linate airport are nearby.
Navigli - Porta Romana - 450 Residential Units and Offices
The second investment was secured through the newly established “Milan Living Fund BTR 1,” managed by Savills Investment Management SGR S.p.A., and includes five properties located between the Navigli area and Porta Romana in Via Balduccio da Pisa 7, Via Carlo Bazzi 51, Via Pestalozzi 11, Via Ettore Ponti 8 and Viale Richard 1. The areas cover a total of over 40,000 square meters in which approximately 450 new rental apartments will be built while a portion will be used for offices.
The first four buildings will be rebuilt from scratch and remain residential, while the Viale Richard skyscraper will undergo a large-scale conversion into a mixed-use building with offices on the lower floors and apartments on the remaining floors.
Bocconi Area - 550 Residential Units
In line with the goal of expanding Hines’ residential platform south of the city, the firm is continuing to invest with the Milan Living Fund I managed by Antirion SGR in a portfolio of properties in Via Lampedusa, 11/A - 13, in the Bocconi area, a part of the city characterized by high residential demand and undersupply.
The acquired portfolio includes nine buildings that are partially occupied by offices. The assets will be converted into 550 build-to-rent units and will be located in a historical residential housing area with many services and convenient connections to the city center.
Hines is planning to create a large green area covering more than 20,000 square meters with 150 trees across the perimeter of the nine buildings. An extensive running track will border the entire area to reduce noise from the surrounding city. The complex will provide the benefit of an ecosystem with all the services residents need.
The three projects will follow international standards of sustainability and energy efficiency in line with Hines’ ESG goal to achieve the highest possible energy certification targets and net-zero carbon emissions. The projects in the Lambrate and Bocconi areas have been designed to reach the LEED GOLD target, while the buildings in the Navigli area are aiming for Class A energy certification.
With these projects, the residential investments made by Hines in Milan rise to over €2 billion, confirming its commitment to the living sector. Milan’s population is expected to grow by 8.3% between 2020 and 2030 with significant unmet demand.
“Today, over 70% of young people between 18 and 35 are looking for a home to rent in Milan and it is essential to respond to this ever-changing demand. The finalization of these investments represent a step forward on our journey of expansion and diversification into the living sector in Milan,” explains Mario Abbadessa, senior managing director & country head of Hines Italy. “Once again, we are demonstrating our ability to stay a step ahead of the market and move into strategic districts to develop Milan, aimed at better management of environmental and social issues. From the very beginning we recognized the potential in Milan to create homes to meet market demand, while contributing to a more sustainable future. For this reason, we will continue to focus on existing residential products to be converted, and on large-scale urban regeneration projects, such as MilanoSesto and Ex Trotto, with significant ESG and economic impacts for Milan.”
Tinka Kleine, senior director Private Real Estate at PGGM,
adds, “The opportunity to build a residential portfolio of 1,400 units in Milan is a great addition to our portfolio with its focus on the mid-market rental segment. The expertise of Hines and our shared ESG ambitions create an excellent base to meet our financial and sustainability targets.”
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.
1. Includes both the global Hines organization as well as RIA AUM as of 31 December 2021
PGGM is a not-for-profit cooperative pension fund service provider. As a pensions administrator, asset manager and advisor to pension fund boards, it executes its social mandate: to provide for good old-age incomes for 4.4 million participants in the Netherlands. On December 31, 2021 PGGM managed long-term pension capital of EUR 291 billion worldwide. Rooted firmly in the Dutch healthcare sector, PGGM develops innovative provisions for labour market issues in this sector, alone or with strategic partners. Our member organisation PGGM&CO supports 764,000 workers and pensioners with a background in healthcare.