Hines Closes 1st Investment in Italy

The firm's European Value Fund 2 expects to deliver 300 new units to the Milan market by 2023.

Trivulzio. Image courtesy of Hines

Hines, on behalf of its European Value Fund 2 (HEVF 2), has closed its first transaction in Italy. The more than 430,000-square-foot portfolio is located in the heart of Milanese historical neighborhoods in the De Angeli, Via Washington and Navigli areas. The properties are less than 15 minutes from Piazza Duomo by public transit.

This area of Milan is undergoing rapid demographic expansion, with the city projected to add 300,000 new residents by 2035 and HEVF 2 on track to deliver 300 new units to the market by 2023.

The uptick in new supply has been boosted by strong market fundamentals and a higher demand for rental housing. A new underground rail line was recently completed in the city and is expected to begin operating in 2022.

The properties were completed in 1970 and are no longer in operation. HEVF 2 will renovate the assets, while targeting LEED certifications and compliance with sustainability standards.

Expanding the BTR market

HEVF 2 is a Luxembourg-based investment fund managed by Hines. The fund focuses on logistics, residential and office properties across Europe. Introduced in 2019, it seeks to grow its build-to-rent footprint across the region.

The fund’s latest investment follows a series of recent transactions, including MilanoSesto, Nodo Bovisa, Borgospesso 15, Ex Trotto, Torre Valesca, Giovenale 15 and Ripamonti 35.

HEVF 2 plans to develop more sustainable build-to-rent options across the city by 2025. The fund is targeting properties that are in disrepair and can be revitalized to house professionals, couples and families.

Its main goal is addressing renters’ modern living needs, such as affordability, flexible space, amenity packages, coworking spaces and green spaces.

In May, Hines topped out One Oak Brook Commons in Chicago. The property is the multifamily component of part of a master-planned mixed-use development.

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