Milan-based Academo, a project company formed by Lendlease and the Equiter Infrastructure II fund (managed by Ersel AM), announced recently that it has secured €215M in financing for the construction of an academic campus in the Milano Innovation District (MIND).
The funding, provided by the European Investment Bank (EIB) and Cassa Depositi e Prestiti (CDP) and partly backed by the InvestEU guarantee, marks a significant milestone for the development project with a total investment exceeding €450M.
“In the last 10 years, we have allocated over €3B to support the Italian educational system, focusing on modernisation, security, energy efficiency, the construction of new student accommodation, and the expansion of teaching and research infrastructure,” says EIB Director of Equity, Growth Capital and Project Finance Alessandro Izzo.
“Following the recent agreement with Polo Strategico Nazionale, this initiative confirms the EIB’s role as a key financial partner in project finance operations, with the goal of promoting this financial technique in support of strategic projects and partnerships in Italy,” adds Izzo.
Goal: Creating a new academic campus
The new academic campus is set to accommodate over 23,000 individuals, including students, researchers, teachers, and other staff.
The goal is to support the creation of new teaching spaces for university students and researchers as part of a broader environmental sustainability-focused urban regeneration project in Milan.
This project aims to establish the first net-zero carbon academic and research facility in Italy and potentially be eligible for GOLD energy-environmental status under the international LEED building certification program.
In concrete terms, the €215M in new funds include a project finance-based direct loan. The financing package comprises a project finance-based direct loan, including an initial tranche of €95M from the EIB and a second tranche of a further €95M from CDP, with an additional €25M provided by CDP as a VAT line for the project.
This means that the EIB’s favourable lending terms will cover €190M of the investment over a long maturity period, thereby reducing the project’s cost for the public sector entity awarding the contract.
“GOLD-level energy and environmental” status
The project may qualify for GOLD-level energy and environmental status under the LEED certification program. It will feature a renewable energy generation system using solar panels and groundwater. The campus will prioritise electric vehicles, leading to over 24% energy savings compared to standard buildings.
This development project is in line with CDP’s 2022-2024 strategic plan and the EIB’s objective to support universities and research. It also follows the priorities identified by CDP’s strategic sector guidelines regarding social infrastructure for enhancing and modernising academic organisations.
“The MIND campus will be a major project for the university and the city in the coming years. It will have wide-ranging national and international impact, creating a sustainable, multidisciplinary university campus with services and infrastructure focused on cutting-edge scientific and technological innovation where students, teachers, and technical and administrative staff will be able to engage in a renewed exchange of ideas,” says University of Milan Rector Elio Franzini.
Cassa Depositi e Prestiti: Supporing Italy since 1850
Cassa Depositi e Prestiti (CDP) has been supporting the Italian economy since 1850. It focuses on accelerating industrial and infrastructure development to contribute to economic and social growth.
CDP promotes sustainable regional development, supports Italian companies domestically and internationally, and collaborates with local authorities to improve public utility services.
It is also involved in international cooperation to implement projects in developing countries and emerging markets. CDP is financed entirely from private resources through postal savings bonds, passbooks, and issues on the national and international financial markets.
“This partnership with EU institutions has enabled us to help the University of Milan to implement a high-impact public-private partnership project of regional importance, with the main objective of improving university life for students in the new headquarters of the science faculty,” adds CDP Head of Infrastructure Carlo Lamari.
“The operation announced today is fully in line with the guidelines presented in our 2022-2024 strategic plan and further confirms CDP’s ongoing commitment to back the development and modernisation of social infrastructure in Italy,” says Lamari.
Lendlease: Creating better communities to thrive
Lendlease is a global, integrated real estate group operating in Australia, Asia, the United States, and Europe.
In Italy, Lendlease is responsible for the development of MIND Milano Innovation District, part of the regeneration project covering the urban area that hosted Expo 2015, and for the mixed-use development of an over 1 million m2 area at Milano Santa Giulia.
“Today’s important milestone consolidates the project’s financing framework and ensures its implementation,” says Lendlease Investment Management Director and Academo CEO Francesco Mandruzzato. “The support of prestigious institutions such as CDP and the EIB as financiers and the Equiter Infrastructure II fund as investor definitively completes the group of partners backing the implementation of this project over the next 3 years.”
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