CDP and Banca Finint are investing with Hines in senior housing: new funds are earmarked for the redevelopment of the former Trotto Milano district
The operation involves the creation of 360 new rent-controlled housing units and initiatives aimed at self-sufficient people over 65, as part of the overall urban and social regeneration plan for the entire area of the Lombardy capital.
The investment will be made through the newly established Affordable Senior Housing ITA Fund managed by Prelios SGR
Milan October 8, 2024 - CDP chose the redevelopment project of the Ex Trotto, the equestrian facility closed in 2012 in Milan’s San Siro district. The initiative is promoted by Hines Italia RE as co-investor and development manager and will contribute to the realization of 360 housing units of senior housing for rent at a subsidized rate1 and related dedicated services aimed at promoting socialization and intergenerational exchange.
The operation is part of a broader urban and social regeneration project, presented by Hines in September 2023, which will affect the 130 thousand square meters of the area of the Lombard capital.
In detail, CDP Real Asset SGR through the National Social Housing Fund (FNAS) is committed to a investment figure that could progressively increase up to 50 million euros. The new resources will flow into the Affordable Senior Housing ITA fund (AshITA- which in Japanese means "tomorrow") whose management will be entrusted to Prelios SGR and which will be open to subscription by additional investors.
Alongside CDP RA there is Bank Finint as co-investor with 15 million euros from the Thematic Fund Integrated Urban Plans, launched by the Italian Ministry of the Interior and the European Investment Bank (AT) to manage within the scope of NextGenerationEU the resources of the PNRR aimed at strengthening the Integrated Urban Plans of the 14 Metropolitan Cities of Italy in partnership with Finint Investments and with the Consulting Group Sinloc Spa.
The joint investment by CDP and Finint involves the purchase by the AshITA fund of a portion of the Ex Trotto in which the residences dedicated to the over 65 self-sufficient, related services and new green spaces open to the community.
The Fund's objective will be to achieve an investment of approximately 250 million euros to build an innovative model that integrates residential accommodation with both social and health services (such as a medical and nursing center) and intergenerational social services (physical activity areas, art workshops) dedicated to the well-being of future residents and also open to the neighborhood.
The overall redevelopment project of the Ex Trotto area, as mentioned, includes the construction of 700 dedicated subsidized rent homes to a multigenerational target, including social housing as well as senior housing. The operation will transform this area of the Lombard capital into a new urban center that will host over 3,000 people.
The project aims to create social value in an area that will benefit a set of non-residential services covering an area of approximately 12,000 square meters: an urban market, local shopping, educational, and sports facilities aimed at a diverse and intergenerational audience.
The structural element is represented by the greenery and public spaces that will occupy 50,000 square meters: a ring-shaped park preserving the historical memory of the trotting track, a central park, and connecting pedestrian green spaces integrating the new district into the surrounding urbanfabric. The site's identity will also be preserved through a significant architectural restoration and repurposing of the listed buildings.
The project has already completed the process for signing the Urban Planning Agreement, which foresees the start of work by the end of 2025 and the delivery of the first spaces to the city starting in 2027.
“With this second investment program dedicated to self-sufficient people over 65, we are further boosting an asset class that is still unconsolidated in Italy: the third of the three social housing segments — social, student, and senior housing — which are at the heart of our business. At the same time, by enhancing an "urban void," we are contributing to Milan's urban regeneration process” it is the comment of Giancarlo Scotti, CEO of CDP Real Asset SGR, which underlines how even in the Ex Trotto project the intervention of CDP is characterized ;"from its institutional role as a catalyst of important market and European resources for initiatives in our country with a strong economic and social impact”.
Lucio Izzi, CEO of the Banca Finint Group commented: “Banca Finint and Finint Investments, leveraging the experience and partnership of Sinloc SpA, are proud to be active promoters of this initiative, which pursues objectives of social inclusion and environmental sustainability, perfectly aligned with those of the Integrated Urban Plans thematic fund. Specifically, this project in the former Trotto area of Milan confirms our commitment to meeting the growing housing need in our country. Our goal is to provide young people, families, and seniors with a home in which to live well and comfortably, while also focusing on urban regeneration and eco-sustainability to foster healthy growth in metropolitan cities and revitalize local economies”.
Mario Abbadessa, senior managing director and country head of Hines in Italy, commented: “The strategic partnership with high-profile institutional investors such as CDP Real Asset and Gruppo Banca Finint, who are investing capital with a long-term perspective, represents an important recognition of the social value of the sustainable and innovative urban development model that distinguishes Ex Trotto Milano. This project enters an important new phase, aiming to provide a concrete response to the needs of the city of Milan, starting with the need to expand the supply of affordable housing, taking into account the demographic trends that are profoundly transforming contemporary society”.
Patrick Del Bigio, AD Prelios SGR, said: “We believe that to create long-term sustainable value, it is necessary to address the increasingly pervasive social and demographic megatrends that are emerging. Among these are the rising demographic age and housing shortages, which require immediate concrete responses. Attention to environmental aspects and compliance with European principles and objectives further enhance the value of this project and guarantee long-term investors and all stakeholders, including the local area”.
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1That is, reduced on the basis of an agreement with the Municipality of Milan
