Hines Sells Italian Subsidiary to Management

International real estate firm Hines has sold its majority stake in the Italian fund and asset management business Hines Italy SGR.
Porta Nuova in Milan

Italy – International real estate firm Hines has sold its majority stake in the Italian fund and asset management business Hines Italy SGR.

After receiving authorization from the Bank of Italy, Manfredi Catella, current CEO of Hines Italy SGR and head of the Hines Italian operation for the past decade, has purchased the majority interest in the fund/asset management company for an undisclosed amount. Prior to the acquisition, Catella had already owned 28.87 percent in Hines Italy SGR, IP Real Estate reported.

Hines opened its Italian office in 1999 in Milan under the leadership of the late Riccardo Catella. His son, Manfredi, joined the firm in 2001, and assumed leadership of Hines Italy in 2005. Alongside the firm’s development business, Hines launched the Italian fund/asset management company, Hines Italia SGR, in 2007, which it co-owned with Catella.

Hines Italy SGR currently manages assets valued at 5 billion euro, or about $5.64 billion. The company has been rebranded COIMA SGR as part of the COIMA investment platform established in 1974 by the Catella family.

Hines now owns a minority stake and a place on its Hines Italy SGR’s board of directors. Going forward, the Houston-based firm will continue to pursue future development and investment opportunities in the Italian market out of the firm’s European Regional Office. Funds managed by Hines outside of Italy will continue to retain ownership in their Italian assets.

Hines’ decision to sell its Italian business stemmed from the sale of Porta Nuova, a 28-building mixed-use project in Milan. Qatar Investment Authority, through its wholly owned subsidiary, Qatar Holding LLC, completed the property’s acquisition in spring 2015.

“As we carefully considered our post-Porta Nuova plans for Italy, we concluded that the regulated fund management business in Italy does not fit within our future European strategy. We would like to thank Manfredi and our Italian team for all of their great efforts and successes in the past years. This sale does not represent an exit for us from Italy and Hines will continue to look for interesting investment opportunities there on behalf of different investment vehicles,” CEO of Hines Europe Michael J.G. Topham said.

Photo credits: Hines