Milan – LAWFUEL – Press Release Service – DLA Piper Rudnick Gray Cary (“DLA Piper”) today announced that it has advised the lending banks on a deal where Le Varesine Srl acquired the Varesine area in Milan, from Progetto Garibaldi SpA. This deal brings about one of the largest and most important urban improvement operations in the city.
Over the next five years, the Varesina area and the adjacent Garibaldi Repubblica area, together covering over 250,000m2 of industrial estate, will become one of the most significant housing developments in Milan. The project will require an investment of over € 850m and bring a mix of housing and commercial properties and include public amenities such as transport links, a park and a library. Public space will amount to about 160,000m2.
Le Varesine, is controlled by Hines Group, Galotti SpA, Ligresti Group (through Immobiliare Lombarda SpA, Fondiaria Sai SpA and Premafin Finanziaria SpA) and Monte dei Paschi di Siena (through MHREC fund).
The financing contract was completed with the assistance of Mediobanca acting as the financial advisor. The banking syndicate was arranged by Eurohypo and comprises Capitalia Group and Banca Popolare di Milano, which respectively financed 50%, 30% and 20% of the deal. Financing was structured for a total value of €697m split into various credit lines.
The lender banks, Eurohypo, Gruppo Capitalia and Banca Popolare di Milano, were advised by a DLA Piper team from the Milan office, led and coordinated by partners Federico Sutti (transactions) and Elisabetta Poltronieri (banking). Le Varesine was assisted by Allen and Overy and Studio Molinari in structuring the legal side of the transaction, by Studio Maisto and Ernst & Young for tax issues, by Studio Leone Torrani for town planning and by Studio Chiomenti for the financial assistance. The operation was completed in the office of Notary Barassi.