M&G Investments has provided a €117.5 million (£105.9m) whole loan for a mixed-use retail and residential development in central Milan, owned by urban mixed-use specialists and private equity real estate investment manager Meyer Bergman. The capital has funded the refinancing and repositioning of the Corti di Baires development, expected to be completed in 2021, with the 3-year loan invested and held by funds managed by M&G.
In addition to 8,000 square metres of Grade A retail units, Corti di Baires will see the creation of 160 modern and high quality mid-market apartments for sale in one of Milan’s most dynamic shopping areas – Corso Buenos Aires. At over 1.5 kilometres, Corso Buenos Aires has one of the highest levels of commercial footfall in Milan and is one of the longest shopping streets in Europe. The area is well served by public transport, with Lima and Loreto underground stations and Milan Central railway station nearby, making it an attractive location for both retail and residential occupiers.
Meyer Bergman acquired the site in 2015 and with full planning consent now in place and works having started, completion is expected in 2021. Kryalos SGR, one of Italy’s leading real estate asset managers, has been appointed as Asset and Development Manager, responsible for supervising the development. Designed by Archeias and Lombardini 22, Italian Costruzioni has been appointed as general contractor.
Andreas Schaefer, Associate Director, Real Estate Finance, M&G Investments, says: “Milan is a prime European real estate market and Corti di Baires is ideally located to benefit from the existing local infrastructure and amenities. Mixed-use developments such as this one offer compelling lending opportunities in the current real estate market environment, particularly with the backing of such a strong sponsor and experienced project team.
“We continue to see strong demand for commercial real estate debt from institutional investors seeking attractive risk adjusted returns and are confident that there is a strong pipeline of investment opportunities in Europe.”
Marcus Meijer, Chief Executive Officer of Meyer Bergman, says: “We are grateful for the support of M&G on this transformational project which will revitalise one of the longest shopping streets in Europe.”
“Since acquiring the asset, Meyer Bergman has finalised plans to optimise and significantly enlarge the existing retail space and reconfigure the residential units above, which will offer people the opportunity to live and shop in this dynamic part of the city.”
M&G’s Real Estate Finance team has committed over £9.0 billion in commercial mortgages (as at 30 June 2019) in the UK and Europe on behalf of over 80 global institutional investors and is one of the largest new lenders to emerge since the 2008 global financial crisis.