AbitareIn and Techbau finalise the deal: 14 residential projects sold and farewell to Star

The transaction through which Techbau New Living acquired from AbitareIn the entire share capital of 14 special purpose vehicles, each owning a residential project – mainly in Milan and one in Florence – was finalised yesterday evening. This marks the conclusion of one of the most significant transactions in the Italian property market in recent months, announced last June and set to reshape the operational scope of the listed developer.

The total value of the transaction (enterprise value) is €141.1 million, an increase of €5.8 million compared with the figure set out in the preliminary agreement, following the finalisation of a new deed of sale. The transaction follows the green light – albeit non-binding – given by AbitareIn’s shareholders’ meeting, which had approved the sale of the relevant special purpose vehicles. These are property developments totalling approximately 164,000 square metres, all of which lack the necessary planning permissions to commence construction, a consequence of the deadlock that has affected Milan’s town planning for around three years.

The contract signed between the parties provides for a provisional payment to AbitareIn of 101.3 million euros. Of this amount, €8 million was paid as a deposit upon signing the agreement, €50.8 million will be paid on completion, whilst the remaining €42.5 million will be paid by 9 September 2027. For this transaction, Banco BPM has allocated a total credit facility of 123 million to Techbau to support the strategic agreement signed. The financing involved the granting of a first tranche, together with the provision of a standby letter of credit to guarantee the second tranche, which is due to be paid in September 2027.

This closing marks the completion of a strategic move that represents a direct response to the profound changes in Milan’s residential property development market. In June, AbitareIn explained that the decision stemmed from the ‘ongoing slowdown in the town planning authorisation process within the Municipality of Milan’, a situation which the company no longer regards as a temporary economic phase but as a structural change in the sector’s operating conditions, exacerbated by the uncertainties linked to the national debate on urban regeneration. The standstill in building permits has, in fact, made the development timelines for numerous property projects unpredictable, forcing operators to bear maintenance costs – ranging from financial interest and site management to design work – without any certainty as to when construction would begin. This context, according to the company, had made it unsustainable to continue holding such a large portfolio of unauthorised projects within its portfolio.

The group’s latest half-yearly report, covering the first six months of the 2025–2026 financial year, showed a fall in revenue to 41.1 million euros (from 63.7 million), EBITDA that remained broadly stable at €6.7 million (from €6.5 million) and a net profit of €433,000 (from €1.09 million). As at 31 March 2026, the net financial position stood at a negative €158.7 million, up from €150.8 million at the end of September 2025, whilst the company had specified that net debt had already fallen to around 139 million by the date of approval of the accounts.