Milano Santa Giulia, Psp with Lendlease: one billion from the Canadian fund


real estate

The American vehicle enters the redevelopment plan alongside the Australians. Launched a first 250 million fund, in total the work is worth 2.5 billion

by Paola Dezza

Andrea Maurizio Gilardoni explains how to make money with homes

The American vehicle enters the redevelopment plan alongside the Australians. Launched a first 250 million fund, in total the work is worth 2.5 billion

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Milan territory of international alliances. In the Lombard city, in fact, Australians and Canadians they will work side by side to regenerate an important peripheral quadrant. It is played on the area of Milan Santa Giuliain fact, the agreement between Lendlease and the Canadian pension fund Psp Investment since yesterday together to proceed with the large urban redevelopment project worth € 2.5 billion.

The Australian giant, who joined the project in 2017, signed a partnership two days ago with the top management of Psp, a group that boasts $ 169 billion of assets under management and is active in real estate, infrastructure, private equity and debt.

A real estate fund has started

The first stage of the agreement takes the form of launching a real estate fund, handled by Ream Sgr, of which Lendlease and Psp will be 50% equal shareholders. The fund will be awarded the two buildings under construction Spark One and Spark Two, in the northern area of ​​the area close to the Rogoredo railway station. But the Canadian investor becomes above all a partner for 50% of the entire Santa Giulia project still to be developed. In which sustainability (the whole project has carbon zero targets), social impact initiatives and long-term vision are combined. The agreement declines Lendlease’s real estate development, investment & asset management strategy which intends to attract primary long-term institutional investors to Italy in large-scale regeneration projects. In this case, for the first time in Italy, through the investment tool of the forward funding, which provides for the financing of the construction phase also through equity capital advanced by the final purchaser of the properties.

As part of the transaction, Lendlease sold the two buildings under construction to the Lendlease MSG 1 fund (50%) through the 100% subsidiary InTown (50% of Risanamento was purchased by the Australians last February). 250 million euros. Lease contracts have been signed with Saipem for Spark One and part of Spark Two, while marketing has just been restarted for the remaining empty spaces of Spark Two. In detail Saipem will occupy approx 43.500 sq m of offices.

Go on with the project

Purchased in October 2019 for € 262 million the Sky headquarters (part of the Lendlease Global Commercial Italy Fund, managed by Ream Sgr and controlled by a Reit listed in Singapore), today Lendlease can proceed with the rest of the project that includes offices, residences to be put on the market e homes to manage in rent, shops. The PalaItalia, the arena that must be completed for the Milan-Cortina 2026 Winter Olympics, will be built by Ovg Europe Limited assisted by the Live Nation event organizing group and the defined agreement will be signed by the summer. To accelerate the time the publication, in mid-May, by the Municipality of the documents relating to the variant to the Integrated Plan of Intervention Rogoredo Montecity necessary for the construction of PalaItalia, the key structure of Milan-Cortina 2026, in addition to the completion of the neighborhood.

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