The partners plan to invest approximately €250 mln in the acquisition and repositioning of assets in this market and have exchanged contracts to purchase the first site.

The partnership’s debut acquisition is a former light industrial site, located at via Folli 24 in the Lambrate district. The partnership plans to redevelop the disused buildings into a residential project, comprising 40 units, which will be sold individually, and related amenities.

Funding for the acquisition comes from Patron Capital’s recently closed fund VI.

Matteo Busà, investment director and partner at Patron Capital, said: 'We strongly believe in the fundamentals of the Milanese residential market and are pleased to be working alongside FREO and Bluestone and leveraging their local experience and network alongside Patron’s international experience and funding capacity.

'Both partners bring impressive track records in the delivery of residential projects in Italy and Europe and have relevant experience in Milan, and we believe the via Folli project will be a very successful first milestone for the partnership.'

Paolo Rela, head of asset management, Italy of Freo Group, said: 'This new joint venture with Patron and Bluestone is a strong endorsement of our ability to work alongside both institutional capital and local developers to provide best-in-class solutions for both.

'We are confident that demand will remain high for good quality new build developments that offer attractive outside space and state-of-the-art energy efficiency credentials, and this new platform is well-positioned to originate and execute residential projects in the strong Milanese market.

'Sustainability is key to Freo’s ESG approach and this inaugural project in Lambrate is a strong indication of the potential in this market for urban regeneration projects to transform abandoned sites into new communities.'

Andrea Bezziccheri of Bluestone, said: 'The strategic partnership with Patron and FREO marks the beginning of a new era for Bluestone, working with two new international partners to continue delivering real estate projects to the market.

'We are extremely proud of our longstanding track record in this space, having been active for more than 20 years, and to have been identified as the operator of choice for international investors looking to work in the Italian real estate market is a strong endorsement of this reputation.

'We look forward to joining forces and unveiling our new projects in the city of Milan in the coming months.'