Hines Adds 213,000 Square Metres of Italian Logistics Space Across Milan and Piedmont

Hines, a global real assets investment manager, has expanded its logistics portfolio in Italy through two separate investments totaling approximately 213,000 square metres, the firm announced Nov. 2. The transactions were made on behalf of the Hines European Core Fund (HECF) and Hines European Real Estate Partners III (HEREP III).

Hines acquired a 19,000-square-metre logistics complex in San Giuliano Milanese, near Milan, for HECF. Separately, the firm has conditionally committed to the forward purchase of a 194,000-square-metre Grade A logistics park in Pozzolo Formigaro, Northern Italy, for HEREP III. The investments, in Lombardy and Piedmont, reflect what Hines described as its conviction that Italy offers attractive opportunities across core and value-add strategies.

Hines Core Acquisition in San Giuliano Milanese

The San Giuliano Milanese property is an estimated 19,000-square-metre logistics complex, equal to roughly 204,500 square feet, located eight kilometres from central Milan with strong transport connectivity. Hines acquired the asset off-market for HECF's core strategy. The firm said the investment provides exposure to Italy's leading logistics market, where limited supply and strong occupier demand support resilient fundamentals.

It is the Core fund's fourth logistics acquisition in Italy, adding prime Milan exposure to its growing portfolio, according to Hines.

Pozzolo Formigaro Logistics Park Forward Purchase

The Pozzolo Formigaro project is an approximately 194,000-square-metre Grade A logistics park, or about 2.09 million square feet, comprising four buildings to be delivered across three phases before 2028. Hines said 110,000 square metres are already committed, while a further 80,000 square metres are subject to conditions. The commitment was made on behalf of HEREP III.

The park is in Greater Piacenza and is positioned to serve demand extending from the Tortona submarket, which Hines described as nearing saturation with limited land available for new development. The site also has connections to Milan, Genoa and the Port of Genoa.

Executive Comments on Italy Strategy

"Italy remains a key focus market for Hines, and these investments reflect our conviction in its long-term growth potential," said Alfonso Munk, Global Co-Head of Investment Management at Hines. "Our European platform allows us to deploy capital selectively through different strategies, combining local market expertise with a consistent focus on long-term value for our investors. These deals reflect that approach and reinforce our commitment to Italy, where we are looking to invest further across our high conviction sectors including industrial, digital infrastructure, living and prime office."

Raoul Ravara, Senior Managing Director and Head of Italy at Hines, said: "These deals reflect the range of opportunities we see in Italian logistics, the strength of our local capabilities and the developer's instinct we bring to execution. San Giuliano adds a strategically important Milan location to our growing Italian portfolio, while Pozzolo aims to create a new institutional-quality logistics park serving the principal commercial corridors across Northern Italy. Together, they demonstrate how our local expertise and relationships continue to create opportunities for Hines and our investors in Italy."

Italian Logistics Market Context

According to Hines Research, European logistics markets continue to benefit from tight supply as of the second quarter of 2026, with industrial construction starts across the region down 68% from their recent cyclical peak. Vacancy has also remained low across many key markets, including Italy.

Italy's logistics sector entered the second half of 2026 with strong occupier and investment activity. Cushman & Wakefield recorded approximately 1.5 million square metres of take-up in the first half, described as the strongest first half in its series, while vacancy fell to approximately 6.9% as absorption outpaced new deliveries. Colliers estimates nationwide vacancy at approximately 3.7%, a gap that reflects differing coverage and market definitions.

Investment volume has also risen. Italian logistics transaction volume reached approximately €1.15 billion in the first half of 2026, up 44% year over year, according to Cushman & Wakefield. Colliers reported approximately €732 million in the second quarter alone, up 420% year over year, with investors focused on core-plus and value-add assets offering rent-reversion potential and strong tenant covenants.

Prime logistics yields were approximately 5.25% net initial yield, while prime rents in Milan and Rome reached approximately €72 per square metre per year, up 3% quarter over quarter in the second quarter.

Hines in Italy and Fund Leadership

Hines has been active in Italy since 1999 and invests across living, office, retail, logistics and mixed-use real estate. Its Italian logistics strategy spans last-mile assets and larger distribution hubs in strategic Northern Italian markets.

HECF is led by Fund Manager Simone Pozzato, while the HEREP series is led by Fund Manager Methan Milkhu. Both form part of the Hines global fund platform, which spans core, core-plus and opportunistic/value-add strategies across Europe, the Americas and Asia Pacific. The deals were originated by Hines' Italian team, which will oversee local execution and draw on the firm's asset management and development expertise to support occupier engagement, operational performance and sustainable value creation across both assets.

Founded in 1957, Hines employs 4,600 people in 29 countries and manages approximately $91 billion of assets, including both the global Hines organization and RIA assets under management as of June 30, 2026.

Outlook

The two transactions pair an income-producing Milan-area asset with a phased development in a corridor Hines describes as supply-constrained. With Pozzolo Formigaro scheduled for delivery in three phases before 2028, delivery timing and conditional commitments on the remaining 80,000 square metres will be among the factors to watch. Munk said Hines is looking to invest further in Italy across industrial, digital infrastructure, living and prime office.

Sources

Hines: Hines Expands Italian Logistics Portfolio Across Core and Value-Add Strategies