€215 Million Financing Secured for University of Milan's Science and Technology Campus

This financing marks the final step in the operation planning phase coordinated by Lendlease, involving a total investment of over €450 million.

The European Investment Bank (EIB) and Cassa Depositi e Prestiti (CDP) have provided €215 million in financing, partly backed by InvestEU, to Academo Srl, a project company formed by Lendlease and the Equiter Infrastructure II fund (managed by Ersel AM). This company was awarded the contract by the University of Milan to design, build, and operate its new science and technology campus in the Milano Innovation District (MIND). The goal of this project is to create new teaching spaces for university students and researchers as part of a broader environmental sustainability-focused urban regeneration initiative in Milan.

This financing marks the final step in the operation planning phase coordinated by Lendlease, involving a total investment of over €450 million. Specifically, the €215 million in new funds includes a project finance-based direct loan, divided into two tranches: €95 million from the EIB and an additional €95 million from CDP, also provided by the EIB. This favorable lending arrangement by the EIB, covering €190 million over a long maturity period, will reduce the project's cost for the public sector entity awarding the contract. Additionally, CDP will provide a €25 million VAT line for the project.

The project is strategically important for the city of Milan, allowing the University to create an innovative campus that centralizes multidisciplinary scientific skills by relocating teaching and research department activities. This initiative is part of the institution's overall development program.

The new campus aims to achieve GOLD-level energy-environmental status under the international LEED certification program. It will feature renewable energy generation using solar panels and groundwater, and the vehicles used within the campus will be almost exclusively electric. The campus will also be served by the new MIND-Merlata suburban railway station, contributing to average energy savings of over 24% compared to standard benchmark buildings.

This operation aligns with CDP's 2022-2024 strategic plan and the EIB's objective to support universities and research. It also adheres to the priorities identified in CDP's strategic sector guidelines regarding the enhancement and modernization of academic organizations.

Alessandro Izzo, EIB Director of Equity, Growth Capital, and Project Finance, highlighted the bank's long history of supporting education in Europe. "In the last 10 years, we have allocated over €3 billion to support the Italian educational system, focusing on modernization, security, energy efficiency, new student accommodation, and the expansion of teaching and research infrastructure," he said. He emphasized that this initiative confirms the EIB’s role as a key financial partner in project finance operations, promoting strategic projects and partnerships in Italy.

Carlo Lamari, CDP Head of Infrastructure, noted, "This partnership with EU institutions helps the University of Milan implement a high-impact public-private partnership project, with the main objective of improving university life for students at the new science faculty headquarters. Today's operation aligns with our 2022-2024 strategic plan and confirms CDP’s commitment to developing and modernizing social infrastructure in Italy."

Francesco Mandruzzato, Lendlease Investment Management Director and Academo CEO, stated, "This milestone consolidates the project's financing framework and ensures its implementation. The support from prestigious institutions like CDP and the EIB, along with the Equiter Infrastructure II fund as an investor, completes the group of partners for this project over the next three years."

University of Milan Rector Elio Franzini added, "The MIND campus is a major project for the university and the city, creating a sustainable, multidisciplinary university campus with services and infrastructure focused on scientific and technological innovation. It will foster a renewed exchange of ideas among students, teachers, and staff. We are laying the groundwork for our future and will work closely with all stakeholders involved."