CBRE Investment Management, on behalf of a fund sponsored by the firm, acquires a Build to Rent asset from developer Greenway S.r.l. The scheme, which is currently under construction, is located in the New Cascina Merlata District in Milan, Italy.
The development will include 170 new affordable Build to Rent homes – a mix of studios, one, two and three bedroom apartments across over ten above-ground floors. The entire building’s GLA is classified as affordable housing by the Milan municipality, which results in circa 30% lower rental costs than open market rents.
The project – which is expected to complete in 2025 – includes two below-ground floors which will provide car parking. The scheme will also have dedicated storage and bike parking on the ground floor and mezzanine level.
Residents will benefit from excellent transport links, with the city centre in easy reach via Via Gallarate and Viale Certosa. The scheme is also in walking distance to the Molino Dorino metro station.
The Build to Rent development is located along the main boulevard of Cascina Merlata – a new 900,000 sqm residential district, currently home to 3,000 people. As well as residential buildings, Cascina Merlata will include public amenities, a shopping centre and a 200,000 sqm public park. The district is also adjacent to Milan’s Expo Area – which is undergoing significant urban regeneration. The Expo houses sporting facilities, an open-air theatre, university campus, and a hospital.
“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.”Alberico Radice Fossati, Head of Transactions Italy, CBRE Investment Management