The developer hopes to enter the Italian office market, which is tipped for strong growth, with a 300,000m2 mixed-use scheme
HRO International is planning a major mixed-use redevelopment project of up to 300,000m2 in Milan for its Italian debut. The developer is understood to have bought an option on a site in the north west of the city belonging to Italian sports betting organisation Snai, near the San Siro football stadium. The project, which will comprise mostly offices with a residential element and a hotel, is thought to be at a delicate stage of planning negotiations.
HRO, which has opened an office in Milan, confirmed that it is working on a major scheme in the city but would not give details. The company is keen to enter the Italian office market, which European investors say will be one of the best performing sectors over the next few years.
Office supply in Milan is low and demand for modern stock is comparatively high, given the economic slowdown in Europe. One of the bigger schemes in the city is by UK fund manager Doughty Hanson, which is developing a 250,000m2 office scheme, the Bodio Centre in north west Milan, on the site of telecom company Alcatel’s former headquarters.
Most other new development is taking place on the city’s periphery. Around 250,000m2 of office space is being developed in a mixture of new buildings and refurbishment projects and there is potential for around 1m m2 to be developed over the next five years.
Seven projects under development
HRO has been active in Europe since the 1960s, having developed 45 projects. In 2002, HRO had seven projects totalling over 190,000 m2 under construction in London, Paris and Frankfurt. In Paris, schemes that HRO has under construction or has recently completed include Rives de Bercy, a 33,000m2 office building; Eurosquare 1 and II in Quartier Victor Hugo; and Saint Ouen and River Plaza in Asniäres-sur-Seine. On completion they will provide 15,400m2, 17,500m2 and 26,700m2 of offices respectively.
In Frankfurt, HRO is developing Junghof Plaza in the heart of the banking district near the Alte Oper. It is the second largest development project in the city and comprises two buildings of around 17,000m2 and around 15,000m2. German open-ended fund manager CGI forward funded the two Frankfurt buildings and the three Paris projects for around €800m. CGI is keen to acquire more property in Italy and could take a stake in the Milan development.
Other HRO office projects include Défense Plaza, a 31,100m2 office scheme in La Défense, Paris, to be completed in 2004; and Victoria Plaza, a 23,850m2 project in London’s West End, which will be completed later this year.
