GALLERIA PLAN: Fondazione Altagamma on Monday unveiled details of its proposal to remodel Galleria Vittorio Emanuele II in Milan. The association is looking to create a real-estate fund that would manage the restoration of the 19th-century Galleria. It would also select the firms to include in the new retail plan.
“With our proposal, we aim to create the most beautiful mall in the world, property of both institutions and private investors, which would always join their efforts to make it look great,” said Santo Versace, the foundation’s president.
This story first appeared in the May 15, 2012 issue of WWD. Subscribe Today.
The Milan municipality would own 51 percent of the fund’s capital, while the lessees would have to buy shares in proportion to the rented spaces. Altagamma also presented itself as a candidate for the role of the fund’s adviser.
According to estimates, selling 49 percent of the fund’s shares, which have a total value of 800 million euros, or $1.03 billion at current exchange, the municipality would get 400 million euros, or $513 million. Expanding the retail space from 216,000 square feet to 538,000 square feet would collect about 35 million euros, or $45 million, in rent for city hall. According to the proposal, 50 percent of the retail space would be for Italian and European fashion, jewelry and beauty brands; another 20 percent for cultural and technology companies; design, interior decoration and artisanal firms would account for 15 percent, and the remaining 15 percent would be for food.