FASHION BUSINESS

WHAT ABOUT ?

HOME TO : • ’S LARGEST BANKING GROUPS • COUNTRY’S STOCK EXCHANGE • ITALY’S FORTUNE 500 COMPANIES TRANSACTIONS HAVE INCREASED BY 7% PER YEAR.

TRENDS Market intensity index of metropolitan area of Milan : 2.59% IN (Only city center: 3.06%) NUMBERS Average Italian market intensity index: 1.69%

The Milan market is very hot. Probably a good moment to invest. OFFICE INVESTMENT BUSINESS(A)

MAIN SECTORS • Dynamic new players, belonging to the consultancy, financial and co-working sectors. • The most dynamic sectors have been the Business Services (18 transactions), OF FOCUS Manufacturing and Energy (17 transactions). • Porta Nuova BD remains the main focus of investors, and there is a growing interest in the rising Southern District. TRENDS IN THE OFFICE SECTOR

• Milan’s numbers of 2018 are surprising. • Outperforming 2017 and 2015 in terms of square meters let and number of transactions. • A take-up of 381,000 sqm, the highest ever recorded. RESIDENTIAL INVESTMENT BUSINESS(B)

➢30000 international students move to Milan yearly. ➢As center of international trades and negotiations, Milan welcomes many short-term period workers. ➢Thanks to platforms such Airbnb, tourism also affects positively the real estate market.

➢Consistent increases in demand for rents and house prices. ➢Investors move their capitals to Milan to benefit from the potential cash flows. CHANGES IN PRICES

➢ Value of buildings is far from what it was before the crisis. ➢ However, it is slowly climbing back to its former glory. ➢ The city center reached prices of almost 10.000€/sqm. ➢ Areas outside the center have more reasonable prices.

➢RENTS CONTINUE TO GROW, NOT ONLY IN THE MAIN AREAS: ➢ THE PRIME RENTS: ❖CBD: 595 € / SQM / YEAR. ❖CENTRE AREAS: € 450 / SQM / YEAR. ❖SEMI-CENTER AREAS : € 330 / SQM / YEAR. ❖SAN DONATO MILANESE AND MILANOFIORI ARE TRENDING UP: € 210 AND € 240 / SQM / YEAR. New, taller, and more spacious buildings are quite hard to come by due to strict building laws.

Older, restored houses are the typical sale.

New buildings are about 25% of the total supply, highest number WHAT IS in Italy, but still too low;

THE Most of the buildings were erected during the 60s, and now being CURRENT almost 70 years old, rules on their faith are even stricter. The investments are concentrated on one and two bedroom SUPPLY SIDE? apartments.

Investors are responsible for just 27% of the demand

The average time a house stays on the market is 122 days, well below to that of some years ago. • The retail sector, the second biggest asset class in Italy in terms of volumes in 2018. • Representing around 29% of the total. • The segment recorded approximately €2.4 billion in the last year. • A volume higher both on an annual basis (+12%) and compared to the last 5 years’ average (+11%). RETAIL OUTLOOK(C) RETAIL: DOMESTIC VS FOREIGN INVESTMENT

• In 2018, predominantly foreign capital investments of €1.55 billion. • In line with historic trends. • Accounted for 54% of the annual volumes. • Originated mainly from Europe (Ireland, UK and France in particular).

• Domestic investment volume doubled on 2018. • National investors involved in 13 deals for a total of over €850 million. • Mainly out-of-town investments, which accounted for 73% of volumes across 27 deals. • High-street transactions amounted to 12, for a total of €650 million. FUTURE PERSPECTIVES IN MILAN

• WINTER OLYMPICS APPROVED FOR 2026 • PARTNERSHIP MILANO- CORTINA D’AMPEZZO • NEW FACILITIES AND RIQUALIFIED BUILDINGS ACROSS THE CITY. IL PALAITALIA

• SANTA GIULIA NEIGHBORHOOD o REQUALIFIED FOR THE ARENA (15 000 SEATS). o SOUTH –EAST AREA OF MILAN • WORKING SITE FROM JANUARY 2021 UNTIL DECEMBER 2023 • FORECASTED INVESTMENT OF 70 MILLION € OLYMPIC VILLAGE

• WILL HOST ATHLETES IN THE FORMER RAILWAY YARD OF • ALMOST 200 000 m2 • 1260 BEDS THAT WILL BE USED FOR STUDENT HOUSING AFTER THE GAMES • STARTING IN JUNE 2022 PALASHARP

• ABANDONED ARENA IN . • 7 MILLION INVESTED BY PRIVATES FOR RESTAURATION • IT WILL BECOME THE HOCKEY ARENA. • IT WILL HOST SPORT EVENTS AND CONCERTS • WORKING SITE FROM END 2020 TO END 2021 • REQUALIFICATION OF THE SORROUNDINGS THANKS TO THE NEW STADIUM STADIO MEAZZA

• WILL ALLOW THE REQUALIFICATION OF THE SURROUNDING AREA

• HOTELS, SHOPS, REASTAURANTS AND GREEN AREAS EXPO MILAN 2015

• Confirmed the role of the city as the capital of business and finance. • Has contributed to the recent developments in the city, above all in Porta Nuova and Citylife. Project Lendlease:

• Lendlease just won the public bid to redevelop the area that held EXPO 2015. • The project envisions a permanent hub with: o new hospital o international research facility and university campus o mixed with new housing , student accommodations o business , retail o a vibrant public realm Expected to be one of the largest real estate developments in Europe. • Numerous and complex o Railway stations o Completion of the blue line metro o The future of Città Studi and Piazza d’Armi CHALLENGES o The reopening of the Navigli OF THE FUTURE • Porta Nuova BD remains the main focus of investors. • The transactions in the area of Scalo di Porta Romana, with a cumulative value of over € 100 million, highlight the growing interest of actors in the rising Southern District.