Orion Capital Managers has agreed to acquire the Milan 4 development project in the Italian city of Milan from the real estate arm of Berlusconi's Fininvest investment unit, PropertyEU has learnt.
Orion is investing €20 mln to buy the site in a share deal which is expected to close in June. The agreement, which marks Fininvest's exit from real estate, includes an earn out clause that could lift the total price to up to €60 mln.
The deal encompasses a 70,000 m2 development site in Bisceglie to the south-west of the city allowing for the construction of up to 700 apartments. The Milano 4 project is expected to involve a total development cost of €200-250 mln.
Fininvest was advised by Vitale & Co. and law firm Chiomenti on the deal. Dentons acted for Orion.
The deal comes hard on the heels of Orion’s purchase last week of another significant development project in Milan from Milan-based Proiezioni Future, with total investment forecast at more than €100 mln. Proiezioni Future is a 10/90 joint venture between Borio Mangiarotti, the Milan-based real estate builder and developer, and Värde Partners, the global alternative investment firm.
The deal represents a sale and construction agreement for a large office development situated within the SeiMilano regeneration project also in Bisceglie near Milan, Italy. The broader scheme comprises a long-term programme of requalification of peripheral and semi-abandoned areas.
The master plan has been shaped by architect Mario Cucinella and includes the development of approximately 100,000 m2 of residential area (including affordable homes), over 30,000 m2 Grade A offices and approximately 10,000 m2 of ancillary retail.
Orion Capital Managers, the second leading international real estate investor to invest in the project, will take over the development of over 30,000 m2 gross leasable area of Grade A modern office buildings.