KWE owned Olimpia Investment Fund agrees major urban regeneration plan for Via Valtellina in Milan
Kennedy Wilson Europe Real Estate Plc (LSE: KWE) an LSE listed property company announces the completion by Olimpia Investment Fund of an agreement for the regeneration of the Farini railway yard in Milan, which includes Via Valtellina site owned by Olimpia Investment Fund as a key gateway to a significant mixed-use commercial and residential development.
The agreement is an Accordo di Programma (AdP) between local authorities and other public administrations coordinating shared public infrastructure work activity.
Via Valtellina site was acquired in January 2016 as part of a portfolio of nine offices fully let to the Italian government. Via Valtellina comprises 26,300 sq m of existing offices let to the Italian government’s Customs and Finance ministries, with a term to expiry of 5.5 years. Plans for the regeneration of this gateway site includes a target gross buildable area of 49,000 sq m of mixed-use residential and commercial space, subject to planning permission.
Mary Ricks, President and CEO of Kennedy Wilson Europe, commented: “This agreement represents an important milestone to the exciting regeneration of the Via Valtellina site given its strategic positioning as a gateway to the larger Farini railway yard regeneration. Creating mixed-use residential and commercial space at Via Valtellina alongside the Olimpia Investment Fund’s partners will unlock the potential of this significant urban site in Milan’s city centre, within close proximity to the established Porta Nuova district.”
Mr Giuseppe Oriani, Managing Director of Savills Investment Management SGR also commented at the closing: “We are very proud to have participated to one of the main urban regeneration plans of the Italian real estate landscape improving the relationship with one of the main international investors, demonstrating the confidence of international investors in the Italian real estate market.”
The AdP, signed between the Municipality of Milan, the Lombardy Region, Ferrovie dello Stato Italiane with Rete Ferroviaria Italiana, FS Sistemi Urbani and Olimpia Investment Fund, and ratified on 13 July 2017, includes the Farini railway yard alongside six others and is part of a wider regeneration plan for disused railway yards in Milan, with an aggregate land area of 1.25 million sq m, of which 200,000 sq m will be used to serve the railway line, with more than 675,000 sq m to be used for open green spaces and civic areas.
KWE’s Italian portfolio, including the Via Valtellina site in Milan, is held by an Italian closed-end real estate alternative investment fund named Olimpia Investment Fund, which is wholly-owned by KWE and managed by Savills Investment Management SGR S.p.A.
Advisers to the Olimpia Investment fund were DLA Piper, Perelli Consulting and Caputo Partnership.