The municipality of Milan is moving forward with its strategy to extract value from its real estate assets with the launch of a second property fund. The creation of the fund, with a target size of EUR 100 mln, comes two years after the launch of a first property vehicle, with a value of some EUR 255 mln.
The municipality of Milan is moving forward with its strategy to extract value from its real estate assets with the launch of a second property fund. The creation of the fund, with a target size of EUR 100 mln, comes two years after the launch of a first property vehicle, with a value of some EUR 255 mln.
The city council said on Friday it has approved the launch of Fondo Comune di Milano II. The council has appointed BNP Paribas REIM's Italian unit Bnl Fondi Immobiliare as fund manager. The vehicle will target capital gains of around EUR 20 mln.
'The municipality of Milan has launched a process to extract value from its real estate assets; the first phase of which was concluded at the end of 2007 with the creation of the first fund - Fondo Comune di Milano I, a closed-end real estate vehicle in which only qualified investors can participate,' the city said.
The municipality will transfer a number of commercial and residential properties located outside the city to the fund. 'Through the creation of this new fund, the municipality is continuing its strategy to become more financially independent', council member Giacomo Beretta commented.
