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MILAN-An Italy-based real estate fund and TIAA-CREF have acquired the former headquarters of the Italian Post Office from EGI SpA, the real-estate arm of the Italian Post Office. The plan is to renovate the 376,740-sf structure for office and retail uses. While no acquisition price was released, the parties involved estimate the combined cost of the acquisition and renovation at $129.1 million (euro 100 million).
The fund, Monte dei Paschi Hines Real Estate Crescita, is managed by Monte Paschi Asset Management SGR and advised by Hines. The fund and TIAA-CREF formed a 50-50 joint venture to own, manage and finance the property. The name of the JV is Business Port S.r.L.
The post office building is located in the Milan Central Station neighborhood. Built in the 1930s, it was designed by Ulisse Stacchini, who also designed Milan's Central Station. The post office overlooks Piazza Luigi di Savoia, an area that has recently been improved by the City Council and Grandi Stazioni as part of the Central Station revitalization program.
The winning design for the renovation was submitted by architect Antonio Citterio. Hines will manage the redevelopment. Demolition work will commence next month; project completion is expected in late 2009. The JV has secured 60% financing for the investment from a pool of banks including Centrobanca, Banca Popolare di Milano and Monte Paschi Banca per l'Impresa.
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