Hines Goes Shopping in Milan

The historical global HQ of Luxottica traded for $106 million.
Piazzale Luigi Cadorna, 3, 20121 Milano, Italy
Piazzale Luigi Cadorna, 3, 20121 Milano, Italy

Milan—Hines recently announced that in a joint-venture with a group of German pension funds has acquired a trophy building located in the historical center of Milan for approximately $106 million (€100 million). Situated on Via Orefici, the building is near Piazza Cordusio and Piazza Duomo, an area which is attracting the interest of major international retail and office tenants.

The five-story building encompasses roughly 130,000 square feet of vacant space and was formerly the global headquarters of the eyewear retailer Luxottica. Hines intends to fully renovate the asset and convert it into a mixed-use property with prime office space on the higher floors and retail space on the lower floors. The building is expected to be held as a long-term investment after being refurbished.

“The resurgence in demand of the historical center of Milan for both high-street retail and office tenants makes the restoration of these historical buildings and their long-term hold an attractive investment proposition for our investor clients. Via Orefici is a great example of this strategy,” Peter Epping, fund manager at Hines for the separate account investing in this asset, said in a prepared remark.

The transaction is Hines’ eight acquisition in Italy in the past 15 months, following the purchase of historical buildings on Milan’s Via Dante, Piazza Cordusio, Via Broletto, Via Torino, Piazza Edison and Via Tornabuoni in Florence.

“Italy remains an attractive market with significant potential and we are delighted to add this latest trophy asset to our portfolio. Once redeveloped the asset will offer strong income potential through its office and retail elements and represents a strategic long-term hold for the company,” added Lars Huber, CEO of Hines Europe.

Photo courtesy of Hines