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Hines bags residential portfolio in Milan for BTR schemes

Via Trivulzio on the right hand side of the image.

Privately owned property company Hines has acquired a residential property portfolio in Milan on behalf of the Hines European Value Fund 2 (HEVF 2) and will create build-to-rent apartments. The deal is the HEVF2’s first finalised deal in Italy.

The 40,000 sq m, 1970s-built portfolio in the South-East quadrant of Milan – at Via Trivulzio 6/8 (pictured right), Via Roncaglia 8 and Via Villoresi 11/13/15 – is currently disused and will be developed to create 300 build-to-rent apartments which will be completed in 2023.

Hines said that the regeneration of the buildings will apply the latest international standards for sustainability, aiming for the highest LEED certification level.

Milan’s residential sector is expected to experience rising demand driven by the demographic shift toward renting and creating world class assets for long term institutional investors and population growth which will add 300,000 new inhabitants to the population by 2035.

Acquisition was ‘rare off-market opportunity’

“From an investment perspective, it has been relatively hard for many cross-border investors to gain market exposure to the residential sector in Milan, so achieving this rare, off-market opportunity and quality in one transaction is a great success for the Fund,” said Paul White, senior managing director and fund manager HEVF 2, at Hines.

The HEVF Series invests across all the major real estate sectors. HEVF 1 focused on core-plus and value-add office, whereas HEVF 2 is most active in BTR and logistics.

Hines has been particularly active in Milan’s living sector with recent deals including MilanoSesto, Nodo Bovisa, Borgospesso 15, Ex Trotto, Torre Valesca, Giovenale 15 and Ripamonti 35.

Hines explained that its strategy is to develop over 5,000 new BTR units in Italy by 2025 by transforming urban areas or individual buildings that have been in a state of disuse.

“We believe in the sustainable development of this constantly-evolving city, which increasingly requires new rental options paired with services designed for wellbeing to meet ever increasing demand,” said Hines Italy country head and senior managing director Mario Abbadessa.