Hines ready to invest 1.5 billion in Italia

The Hines Group increased its ability to raise capital from institutional investors by 130% in two years.

"The amount raised is distributed across the three lines - core, core plus and value-add - and this is another important signal, because it indicates a capacity for deployment across the risk-return spectrum. If there were only core capital, one might think of a simple defensive reallocation. But no: we invest from development to urban regeneration, through core plus to pure core,' he explains.

Although the perception of Italia is improving, Spain is considered more attractive. "Spain is growing more economically, but is less stable politically. Italia, on the other hand, is perceived as stable, albeit with lower growth and is a smaller market with little product,' he says.

What are the investment opportunities? 'Among the main asset classes, apart from living, we are very interested in retail, especially 'out of town' retail: outlets, retail parks, shopping centres,' he says. And this is new. "They have lower management costs and today perform above pre-Covid levels," he continues, "Logistics continues to be very popular. Last year we did four large operations for about EUR 400 million and 450,000 square metres. It is the only asset class that has not declined post-Covid'. What about hotels? Hines only looks at the sector if opportunities present themselves.

Another sector that is growing strongly is self storage, but the product is lacking in Italia. Data centres, on the other hand, are a great opportunity: the focus is on Milan and the surrounding area, but also on Piedmont and Veneto as new frontiers.

Hines invests through three pan-European funds, plus other sources of capital and joint ventures. 'We can also do one-off transactions with third-party investors,' explains Ravara.

Acquisitions and divestments. 'In 2024, we slowed down some divestments because the market was not ready,' he emphasises. 'For example, we evaluated the sale of an asset on Via della Spiga, but the timing was not right.

In Milan today, the group is carrying out several urban regeneration and development projects, a soul that remains alive in the near future. Among the projects is the Trotto, in the San Siro area, with more than 700 housing units, part of which will be in convention and part in senior living. There will also be public services, park, school and infrastructure. The project has been slowed down by the general situation in the Milan municipality due to the investigation, which has consequently slowed down the construction sites.

Another important project is Unione Zero in Milanosesto, Sesto San Giovanni, already at an advanced stage, with student housing, offices and the Intesa Sanpaolo headquarters.

'In Milan we also have a project in Lambrate (450 flats in all) and another complex near Bocconi,' he says. 'In Rome we are interested, but it is more difficult to find product.

Globally, Hines is reorganising itself into three macro-clusters to improve integration and cross-border investment capabilities, e.g. in living and data centres.

And offices? "Selectively we are looking at Milan and Rome," he continues, "The capital is a more difficult and more complex market that investors are looking at, but not as an alternative to Milan. The idea that international capital would move to Rome as a result of the Milan investigation has not really been followed up. According to the experts, the capital may in fact represent a second important market in Italia, but Milan is still the main gateway to Italy for many market players.