CBRE Financial commitment Administration has bought a make-to-rent multifamily asset currently under construction in Milan, Italy.
On behalf of a fund sponsored by the firm, CBRE Investment Management acquired the asset from developer Greenway S.r.l.
Once complete, the asset, which is classed as affordable housing, will comprise 170 apartments spread over ten above-ground floors, with two below-ground floors allocated for car parking. The ground floor and mezzanine level will be dedicated to storage and bike parking. Homes will range from studios to three-bedroom apartments.
The multifamily asset is located along the main boulevard of Cascina Merlata – a new 900,000 sq m residential district.
Already home to 3,000 people, development at Cascina Merlata is expected to complete in 2025, when its population will climb to circa 13,000. As well as residential buildings, Cascina Merlata will include public amenities, a shopping centre, and a 200,000 sq m public park.
The Cascina Merlata district is adjacent to Milan’s Expo Area, which is undergoing significant urban regeneration, and houses sporting facilities, an open-air theatre, a university campus, and a hospital.
”100% of the building’s GLA is classified as affordable housing by the Milan municipality and as a result, the rent is circa 30% lower than the open market rent, making this a highly defensive investment asset with strong reversionary potential over the long term,” said CBRE IM.
Alberico Radice Fossati, Head of Transactions Italy at CBRE Investment Management, said: “Milan is home to one of the highest numbers of homeowners in the EU, but in recent years, there has been a shift to renting due to the high prices of homes, as well as people looking for flexibility in where they live. We have also seen the appetite in Milan increase for multifamily properties offering hospitality-style amenities – reception areas, carsharing, in-house gyms, and so on. This was an exciting opportunity to purchase a residential rental asset that meets these criteria while offering an affordable solution for living within a city that is already reaping the rewards of various regeneration projects.”