Hines Acquires Flagship High-Street Retail Asset in Milan

(LONDON) – Hines, the international real estate firm, has successfully completed the acquisition of a flagship high-street retail property on Via Torino, Milan’s prime mass-market high-street, for €52 million on behalf of the Hines Pan-European Core Fund (HECF).

The 3,300-square-meter building is located in the heart of the historical center of Milan about 500 meters from Piazza Duomo and Corso Vittorio Emanuele. Its retail units front one of the busiest streets in Milan distinguished by the presence of the major international brands.

The iconic modern building is fully leased with the major tenant being the Italian shoemaker Geox, who chose this location for their flagship store in Italy.

This transaction represents the fifth acquisition by Hines 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 and Via Tornabuoni represent the second and third assets owned by HECF in Italy following the acquisition of the Richemont’s group Italian HQ building on Via Crespi in Milan, last year.

Mario Abbadessa, Italy’s country head for Hines, said: “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.”

Peter Epping, fund manager of HECF, added: “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.”

Since entering Italy in 1999, Hines has developed 20 projects, including the landmark mixed-use development Porta Nuova in Milan, which includes 140,000 square meters of office, 125,000 square meters of residential and 40,000 square meters of retail and cultural venues.

The legal support was provided by Freshfield Bruckhaus Deriger with PWC for the fiscal aspect. Savills also advised.

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.

Hines is a privately owned global real estate investment firm founded in 1957 with a presence in 192 cities in 20 countries. Hines has $93.2 billion of assets under management, including $47.9 billion for which Hines provides fiduciary investment management services, and $45.3 billion for which Hines provides third-party property-level services. The firm has 105 developments currently underway around the world. Historically, Hines has developed, redeveloped or acquired 1,180 properties, totaling over 379 million square feet. The firm’s current property and asset management portfolio includes 483 properties, representing over 199 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.