Milan / Frankfurt am Main, July 3 2016
Seven-storey retail and office building in the historical centre of Milan
The iconic property will undergo redevelopment
Fourth acquisition for Bayerische Versorgungskammer’s € 1.3 billion high-street retail mandate
This 11,000 sqm 19th century building at 2 Piazza Cordusio is located in the heart of the commercial and financial district adjacent to the Galleria Vittorio Emanuele and the Duomo of Milan. Overlooking Piazza Cordusio, the iconic property is almost fully vacant, and will undergo redevelopment to bring the building back to its former grandeur, creating flagship high-street retail units on the ground and first floors, making full use of the building’s large frontage. The upper floors will be converted into exclusive offices with a view of the Piazza and the centre of Milan.
This transaction is the fourth acquisition by Hines and Universal-Investment for the BVK mandate, having been appointed late last year to execute a €1.3 billion investment programme targeting prime high-street retail property across Europe. The acquisition follows the purchase in March of another flagship building in the historical centre of Milan, via Dante 16. Further acquisitions of prime high-street retail assets were previously made in Oslo’s Karl Johans Gate and Glasgow’s Buchanan Street.
Piazza Cordusio is one of the most iconic squares in Milan and has been the center of the Italian finance industry since the 19th century. Following the relocation of several institutions, such as Unicredit who has consolidated its headquarters in the new Hines-developed business district of Porta Nuova, Piazza Cordusio will be regenerated through a joint effort by the City of Milan and local property and business owners. Situated between the popular retail locations via Dante and Galleria Vittorio Emanuele, the Piazza will be integrated into the high-street market and revitalized as a more appealing destination.
Mario Abbadessa, Italy country head for Hines, said: “Piazza Cordusio is an outstanding location in Milan’s historical centre that will play a vital role as the nucleus between the different retail locations in Milan and a showcase for flagship stores. With its stature and visibility, 2 Piazza Cordusio is a special building that is ideally placed to house some of the world’s best retail brands currently looking for attractive space in Milan.”
Peter Epping, Fund Manager of the BVK mandate for Hines, said: “With its unique location on Piazza Cordusio forming part of the regeneration of one of Milan’s grand piazzas, 2 Piazza Cordusio is an ideal asset for a redevelopment strategy for BVK. We aim to create an outstanding asset that will not only create significant value for our investor but also play its part in improving Milan’s city centre and make it a pleasant place for people to shop and live.”
Lars Huber, CO-CEO of Hines Europe, added: “Italy represents an attractive market with significant potential. The quality of the building coupled with its excellent location and diverse income profile from both retail and office tenants make this asset a compelling proposition for BVK”. Since entering Italy in 1999, Hines has developed 20 projects, including the landmark mixed-use development Porta Nuova in Milan, which includes 140,000 sq m of office, 125,000 sq m of residential and 40,000 sq m of retail and cultural venues.
Alexander Tannenbaum, Managing Director at Universal-Investment, heading the Real Estate division, added:” High-street retail properties experience a strong demand by German institutional investors as they are currently an interesting opportunity to diversify their real estate portfolios”.
Hines is a privately owned global real estate investment firm founded in 1957 with a presence in 182 cities in 20 countries. Hines has $89.1 billion of assets under management, including $42.5 billion for which Hines provides fiduciary investment management services, and $46.6 billion for which Hines provides third-party property-level services. The firm has 109 developments currently underway around the world. Historically, Hines has developed, redeveloped or acquired 1,126 properties, totaling over 351 million square feet. The firm’s current property and asset management portfolio includes 457 properties, representing over 193 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.
Bayerische Versorgungskammer is the competence and service centre for occupational and communal pension schemes and Germany´s largest pension scheme group under public law. It is the joint executive body of twelve liberal professions´ and communal pension schemes. Bayerische Versorgungskammer covers about 2 million insured persons in total, with contributions of €4 billion and €2.9 billion pension payments annually. It currently has €62 billion assets under management and 1,200 employees.
Visit www.versorgungskammer.de for more information.