Hines Acquires Flagship Retail Asset in Italy
- Dec 06, 2016
Milan, Italy—Hines has closed on the acquisition of an iconic high-street retail property on Via Torino in Milan. The company paid approximately $55.8 million (€52 million) to purchase the asset on behalf of the Hines Pan-European Core Fund (HECF).
The 35,500-square-foot building is situated in the heart of the city’s historical center, in proximity to Piazza Duomo and Corso Vittorio Emanuele. The property is fully leased and its retail units front one of the busiest streets in Milan. One of the tenants, Italian shoemaker Geox, chose this location for its flagship store in Italy.
“The high-street market continues to be very interesting, particularly in top locations like the center of Milan, which continues to show resilience to the potential instability in a challenging market,” Mario Abbadessa, Italy’s head for Hines, said in prepared remarks.
The transaction marks Hines’ fifth acquisition in Italy since the beginning of 2016, following the purchase of historical buildings on Milan’s Via Dante, Via Cordusio, Via Broletto and Via Tornabuoni in Florence. The assets bought on Via Torino in Milan and Via Tornabuoni in Florence represent the second and third assets owned by HECF in Italy following the acquisition of the Richemont’s group Italian headquarters building on Via Crespi in Milan, last year.
“Italy continues to be an attractive target market for HECF with a resurging high-street retail sector that is poised to develop strongly over the years to come. As one of the fashion capitals of the world, Milan stands out as its most interesting city market for retail properties. With its modern retail-orientated design in this excellent location and the strong positioning of Geox, it is a compelling investment for HECF,” added Peter Epping, fund manager of HECF.
Legal support was provided by Freshfield Bruckhaus Deriger with PwC. Savills also advised on the transaction.
HECF is a Euro-denominated, Luxembourg-based investment fund set up in 2007. Managed by the Hines group, its aim is to build a large portfolio of commercial real estate across Europe.
Since entering Italy in 1999, Hines has developed 20 projects, including the landmark mixed-use development Porta Nuova in Milan, which includes 1.5 million square feet of office, 1.3 million square feet of residential and 430,000 square feet of retail and cultural venues.
Image courtesy of Hines