Hines and Blue Noble complete preliminary acquisition of Via Borgospessp 15 in Milan
Hines, the international real estate firm, in a joint venture with Blue Noble, has invested in the prestigious Via Borgospesso 15 in Milan with the aim of creating over 70 serviced apartments.
Worth more than EUR70 million, the investment was completed via the recently established Smart Stay fund, managed by Antirion SGR.
The investment is confirmation of Hines’ living-sector focused strategy to reposition an asset of high historical value which is located in one of the city’s most iconic districts, attracting local and international visitors. It looks ahead to the growing “home away from home” trend, seeking to meet future demand from tourists and professionals visiting Milan in search of welcoming accommodation without giving up the benefits of a modern and efficient hospitality venue. This new living model aims to provide a concrete solution to the current limited availability of high-quality short-stay solutions located in Milan’s historical centre and builds on positive messages of recovery from the tourism and hospitality sectors, with the prospect that they can return to pre-pandemic levels in 2023 and record a further increase ahead of the 2026 Winter Olympics.
The property, which has a surface area of around 5,000 square metres, will be extensively restructured, adhering to the highest international standards of energy efficiency and sustainability. With a planned opening in 2023, the commercial strategy for the venue envisages units rented out for brief periods. The property will have a full range of services, including co-working areas, retail spaces, areas for working out, an elegant internal courtyard and a panoramic rooftop offering striking views over Milan.
The individual apartments will feature a modern and comfortable design, characterised by a distinctive identity inspired by sustainability and efficiency. There will be a special focus on large, communal spaces designed for the safety and wellbeing of guests with different needs.
The Borgospesso deal strengthens the strategic collaboration between Hines and Blue Noble. This partnership has resulted in investments in Italy totalling approximately EUR200 million in recent years, all in the living sector. These include the Giovenale 15 and Ripamonti 35 student housing assets in Milan, to create a residential product focusing on a community and experiential-oriented concept of space, and the residential asset in Corso Italia in Florence.
“Hines continues to invest significantly in the living sector,” adds Mario Abbadessa, Senior Managing Director and Country Head of Hines Italy. “Within this segment, serviced apartments show strong potential for development and growth with the backdrop of a limited supply in the Milan area. Our target is to invest EUR2 billion in the next 24 months both in the living space via student housing, affordable residential units and serviced apartments, and in the logistics sector. We are sure that the resilience of Milan will help it emerge from this difficult period even stronger.”
“We are delighted with the acquisition of this prized asset in Via Borgospesso,” says Paul Forshaw, CEO of Blue Noble. “This is the fourth strategic investment we have made in Italy with our longstanding partners, Hines, and grows our portfolio of assets for student residences or short-term stays. We have a strong conviction in the living sector and believe that these two segments in particular are set to grow in the primary Italian markets.”
Hines was supported by BIP — Studio Belvedere Inzaghi & Partners and DLA Piper in the legal, regulatory, administrative, planning and financing aspects of the transaction. EY provided tax assistance, including for the structuring and acquisition phase of the transaction. Yard Reaas Group worked on technical issues and HVS Global Hospitality Services on sales services.