- Agreements signed for control of MilanoSesto SpA, giving COIMA and Redo 90% ownership of the area
- COIMA and Redo will develop the affordable housing portion of the Unione Zero lot, whereas Hines and Prelios will continue the real estate development process already underway
Milan, 6th November 2023 – COIMA SGR (“COIMA”), leader in investment, development and management of real estate assets on behalf of institutional investors, and Redo SGR Società benefit (“Redo), leader in affordable housing and urban regeneration with social impact (together “the two Companies”), announce the signing of agreements for their entry in the MilanoSesto project by acquiring 100% of the Company MilanoSesto SpA, indirectly held by Hines Iron MilanoSesto Associates LLC., and of the social housing component of the “Unione Zero” lot, equivalent to 90% of the total surface area. Thus, starting a process that will boost the largest urban regeneration project in Italy and among the biggest in Europe, with a gross lot area of more than 1 million sqm and gross floor area allocated as follows:
- The larger area (about 840,000 sqm) owned by MilanoSestoSpA, will include, among the different functional uses, a residential component on an already remediated area, with market-rate, affordable and social housing projects, in addition to the City of Health and Research (Città della Salute e della Ricerca), headed by the Lombardy Region, and 45 hectares destined for parks;
- the approx. 155,000 GFA lot, called Unione Zero, which includes an area of about 27,000 sqm acquired by COIMA and Redo for the development of affordable housing. The remaining approx. 128,000 sqm will maintain its current ownership and functional uses, that include office buildings, student housing, hotel accommodation and market-rate housing.
The Unione Zero lot ownership, with the exception of the affordable housing portion, will remain with the fund of the same name “Unione Zero”, managed by Prelios SGR and participated by Cale Street and Hines.
A fundamental element of the path taken by the two Companies, in addition to the contribution of their respective relevant track records in the areas of reference, is the development and implementation of a complex financial maneuver that, thanks to the contribution of financing banks, Intesa Sanpaolo in particular, will contribute to the recovery and further relaunch of a crucial district for the Milan metropolitan area, Lombardy and our country. The maneuver will involve the conversion of about 900 million euros (nominal value) of credit from Intesa Sanpaolo, Unicredit, Banco BPM and IFIS into equity.
Affordable housing of Unione Zero dedicated to hospital personnel
In addition to the continuation of the development activities started by Hines and Prelios on the Union Zero lot, where work is being done on the student accommodation, hotel, private towers and the first portion of urban park, COIMA and Redo will develop approx. 27,000 sqm of affordable housing. It will comprise approx. 350 new apartments dedicated to housing needs of hospital personnel within City of Health and its supply chain. The apartments will be developed through a newly established fund managed by Redo and subscribed by Redo City Regeneration Fund, Italy’s first art. 9 SFDR sustainable investment fund specializing in social impact urban regeneration and COIMA Housing, a fund dedicated to sustainable housing already participated in by Italian institutional investors and by Intesa Sanpaolo.