Qatar Sovereign Fund Moves in on Milan Business District
Posted on 03/01/2015
Sovereign wealth funds are breathing life into Italy – at least into office real estate. Hines Italia SGR, part of Houston-based Hines, announced that Qatar Investment Authority (QIA), through Qatar Holding LLC, has taken a 100% interest in the Porta Nuova district in Milan. The QIA had a 40% stake in the massive mixed-use development since May 2013. The 25-building development was valued a bit more than €2 billion. COIMA s.r.l, founded by the Catella Family, will assume property and project management responsibilities of Porta Nuova.
Sellers
The sellers were Hines European Development Fund, Italian insurer Unipol Sai, MH Real Estate Crescita (MHREC – managed by Hines Italia), Hines Italia Core Opportunity Fund (HICOF – managed by Hines Italia), COIMA s.r.l and Galotti. As of March 2014, Hines Italia SGR is owned 63.13% by Hines, 28.87% by Manfredi Catella and 8% by Francesco Micheli.
The development project started in 2005. Porta Nuova is near Milan’s iconic Gothic cathedral and has undergone an urban renewal.
Hines Italia SGR CEO Manfredi Catella commented in the press release, “The acquisition by QIA represents a very positive sign for Italy in terms of attractiveness of the country to leading institutional investors. For Porta Nuova and its original sponsors, it is an extraordinary result proving the quality of concept and execution of one of the largest mixed-use development in Europe.”
