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Bergognone 53
Milan, Italy
Project Type:Commercial/Industrial
Case No:C036012
Year:2006
SUMMARY
Formerly the main headquarters of the Milan branch of the Italian Postal Service, Bergognone 53 is a cluster of fourseparate buildings sitting on 1.2 hectares (0.5 acre) of land. The buildings range in height from five to nine stories.The structures’ original early-1960s modern, Functionalist style was updated and numerous sustainable features wereadded to reduce energy consumption. A glass facade placed in front of the glass curtain wall on the south side of oneof the buildings forms a “double skin” of panes that acts as a permanent sunscreen and provides both thermal andacoustic insulation. The project also employs chilled support beams as an energy-efficient means to assist cooling,and solar panels on the roofs generate electricity for the common areas and lighting in the parking garage.International financial advisory services firm Deloitte Touche occupies the entire complex and on the first floor akindergarten is being established that will be primarily for the children of Deloitte employees.
FEATURES
RenovationSustainable DevelopmentSolar PanelsUrban RegenerationPublic/Private Partnership
Bergognone 53
Milan, Italy
Project Type: Commercial/Industrial
Subcategory: Office Buildings
Volume 36 Number 12
April–June 2006
Case Number: C036012
PROJECT TYPE
Formerly the main headquarters of the Milan branch of the Italian Postal Service, Bergognone 53 is a cluster offour separate buildings sitting on 1.2 hectares (0.5 acre) of land. The buildings range in height from five to ninestories. The structures’ original early-1960s modern, Functionalist style was updated and numerous sustainablefeatures were added to reduce energy consumption. A glass facade placed in front of the glass curtain wall onthe south side of one of the buildings forms a “double skin” of panes that acts as a permanent sunscreen andprovides both thermal and acoustic insulation. The project also employs chilled support beams as anenergy-efficient means to assist cooling, and solar panels on the roofs generate electricity for the common areasand lighting in the parking garage. International financial advisory services firm Deloitte Touche occupies theentire complex and on the first floor a kindergarten is being established that will be primarily for the children ofDeloitte employees.
LOCATIONCentral City
SITE SIZE1.2 hectares/0.5 acre
LAND USESOffice Buildings, Kindergarten
KEYWORDS/SPECIAL FEATURES
RenovationSustainable DevelopmentSolar PanelsUrban RegenerationPublic/Private Partnership
OWNER AND DEVELOPER
Hines European Development FundVia della Moscova, 18 20121 Milan, Italy 39-02-65506601Fax: 39-02-62690921www.hines.com
PROJECT MANAGER
Hines ItaliaVia della Moscova, 18 20121 Milan, Italy 39-02-65506601Fax: 39-02-62690921www.hines.com
STRUCTURAL, MECHANICAL, AND ELECTRICAL ENGINEER AND ARCHITECT
Mario Cucinella Architect: MCA DesignVia Matteotti, 21Bologna, Italy
GENERAL DESCRIPTION
Bergognone 53 is an office and commercial complex created through the adaptive use of the Italian Postal Servicesheadquarters for the city of Milan, Italy. Located adjacent to the historic center of the city, the project was renovated,managed, and sold by the Hines Corporation, and is the company’s second completed work in Italy. Bergognone 53 isan example of the successful integration of sustainable systems into a Class A office building. This was achieved whilemaintaining the existing building forms and while contributing to the character of the rapidly redeveloping area ofMilan through its contemporary architectural expression.
Ranging in height from five to nine stories, the complex’s original early-1960s modern, Functionalist buildings weregiven a makeover that included use of bright colors, rooftop solar panels, and a new glass facade. The project’s fourbuildings are accessed through a central courtyard that is covered by a high-tech glass shelter that providesprotection from the rain while letting in both sunlight and fresh air. Although the renovation allowed for the option ofmultiple tenants, international firm Deloitte Touche is the sole occupant along with a kindergarten that will serve thechildren of its employees.
THE SITE
The building complex sits on the southeast corner of a square at the intersection of Via Bergognone and Via Tortona,and has frontage on both streets. This location is only two blocks from the Porta Genova Metro Station, which givesaccess to Milan’s extensive public subway network.
Named for its address on Via Bergognone, Bergognone 53 is situated in the Porta Genova district of Milan. This districtis located to the west of—and immediately adjacent to—the historic center of the city. It is bordered to the south bythe Navigli canal area. Historically, the district was used for industrial purposes and the many warehouses andindustrial structures continue to define its character.
Significant redevelopment has been occurring in the Porta Genova district in recent years. This development has beendriven primarily by private initiative, and is due in large part to former warehouse space becoming available so closeto the city center. Space of this loft-type character is typically attractive to businesses involved in creative servicesand several of Milan’s famous fashion houses have relocated to the district. The main studio for Giorgio Armani, forexample, is an immediate neighbor to Bergognone 53.
DEVELOPMENT PROCESS/FINANCING
In 2000, the Italian Postal Service decided to relocate its postal activities from the complex at Bergognone 53 and sell the buildings for private development. This was at the beginning of a wave of development in the Porta Genova district and the redevelopment of Bergognone 53 would, in the next six years, serve as a catalyst for further development in the area.
Hines—a privately owned investment and real estate development and management company with nearly 50 years ofexperience and a portfolio of 830 properties in 15 different countries—was one of six bidders competing to acquire theproperty through a tender process administered by the Italian Postal Service. The material submitted for tenderconsisted of a binding offer with a guarantee, a statement regarding Hines’s sustainability, and a preliminaryfeasibility study for the future development of the site. Hines was successful in its bid and acquired the property inDecember 2000.
Hines’s goal for the renovation was to make the building complex more energy efficient through the addition ofsustainable systems. Its continuing efforts in this field led the company to receive the U.S. Environmental ProtectionAgency’s ENERGY STAR Sustained Excellence Award in 2004. Another one of Hines’s goals—and an establishedcompanywide business practice—was to engage a well-known architect for the project so that the firm could capitalizeon the value of a high level of design quality.
Hines’s building program called for converting the site into modern, flexible office space. This program also took intoaccount requirements from the city that the gross floor area of the existing buildings be maintained and distributed infloors matching the existing structures.
The building program was then used as the basis for an international, invited architectural competition that secured Hines a variety of proposals to select from at the schematic phase, and drew attention to the project already in the earliest phase of development. Hines invited 11 architecture firms from Italy, France, Germany, England, and the United States to submit competition proposals. Among the participants were well-known firms such as Skidmore, Owings & Merrill (SOM) and NBBJ.
MCA, Mario Cucinella Integrated Design, won the competition. Mario Cucinella, an Italian architect based in Bologne, was a partner in the internationally recognized office of Renzo Piano before starting his own firm. The selection of MCA was based on the quality of their design and the public relations value of selecting a popular local architect for the job, thus winning goodwill with the authorities and the general public in the city. Renovation of the existing
buildings began in March 2002 and construction was completed toward the end of 2004.
The project was financed through a corporation created for the purpose. Hines had controlling interest in thecorporation, and significant funding was lent from Banca Popolare di Milano. The project also received approximately€�80,000 from the Lombardy Region (Regione Lombardia) to support the cost of a photovoltaic plant as part of its“10,000 photovoltaic roofs” initiative. This funding covered about half of the expense of establishing the photovoltaicplant.
DESIGN
As mentioned earlier, the original complex was constructed during the early 1960s in a modern, Functionalist style. The four buildings together define a central, outdoor courtyard. All of the structures are five stories tall with the exception of the structure facing Via Bergognone, which contains nine stories.
MCA converted the postal headquarters into a contemporary office complex through a series of adaptations and interventions to the existing building volumes and courtyard. The building volumes themselves were not changed with the exception of an area along Via Tortona at the intersection between the five- and nine-story volumes of two adjoining buildings. Part of one of the existing five-story structures was demolished to create an open and spacious lobby that now serves as the shared entrance to the complex. This lobby provides access to two glass bridges that lead into the newly developed courtyard area. Each of the other four buildings is accessed from this courtyard and shares the landscaped areas.
The courtyard comprises overlapping terraces that recede from the inner face of the buildings to allow light into thebasement levels and thus increase the usability of otherwise limited-function areas. Water and green plantings areincorporated in these terrace levels. The courtyard is covered by a high-tech glass shelter consisting of glass “scales”that are hung on a thin catenary—cable-suspended—system of steel rods and wires. This glass shelter providesprotection from the rain while allowing ample amounts of daylight and fresh air to enter the space.
The complex was designed to be leased to either several tenants or one large tenant and the interior areas were fit out with contemporary finishes. Double-high areas were inserted at strategic locations, which open the spaces and create connections between floors. One hundred parking spaces were established under the courtyard and are accessed via a ramp located along the southern edge of the property.
Facade renovations were extensive and included installation of new windows, refurbishment of exterior surfaces, andapplication of bright colors. The largest building along Via Bergognone was fitted with an outer facade of glass over aninner glass curtain wall, forming a “double skin.” This updated the structure’s appearance significantly and plays anintegral role in screening this part of the complex from the sun. Not only does the double-skin facade shield thebuilding from the sun, but it also serves as a form of thermal and acoustical insulation, thereby reducing heating andcooling expenses.
The design is characterized throughout by sustainable strategies and systems. The double facade along the southwestern shell of the complex reduces the amount of mechanical ventilation required for cooling and acts as an insulating air buffer. Chilled beams are also integrated into the construction as another supplement to conventional air conditioning. Furthermore, there is a solar energy collection plant on the roof that provides electricity for the common areas and lighting in the parking garage. Excess electricity is sold to the local utility (AEM Elettricitá).
CONSTRUCTION
Project and construction management was performed by a team from Hines. This team managed and coordinated the activities of six separate contractors working on civil works, vertical transportation systems, the photovoltaic plant, mechanical and electrical systems, shell, and the glass canopy.
All four of the existing buildings—which were constructed of concrete in the early 1960s—were gutted down to thecore. Steel reinforcing was then installed where the structures were to be loaded in new ways—for example, atconnection points for the glass canopy in the courtyard.
MARKETING AND PERFORMANCE
Marketing for the project began even before Hines acquired the property, both through the Milan branch office of DTZ,an international real estate adviser, as well as through an informal business network. Acquisition of the property andthe subsequent architectural competition then elevated the project’s visibility from a marketing perspective. Toachieve the lease rates desired on the project, Hines searched for large, international companies that would be willingto pay for a high-quality property. A preliminary lease agreement was signed with Deloitte Touche in August 2003 foroccupancy of the entire project.
Changes to the design were incorporated during construction to tailor the complex specifically to the needs of Deloitte Touche. These changes included the reduction of underground parking in return for additional archive space, conversion of space on the ground floor intended for shops into an auditorium and library, and conversion of many of the open-plan office areas into private offices. Another significant change was the incorporation of a kindergarten primarily for children of Deloitte Touche employees on the ground floor. Interior fitout and management of this component was, as an exception, given completely over to Deloitte Touche as the tenant.
The property was always intended to be sold and to this end Hines issued an international tender in December 2004.The sale was finalized to Vienna, Austria–based Signal Property Fund in May 2005. Deloitte Touche remains the soletenant.
The project was highly profitable for Hines. Deloitte Touche underwent an expected adjustment period while moving into the new complex and beginning to use it for its day-to-day activities. The sustainable components of the design are performing as predicted.
EXPERIENCE GAINED
Buildings of this high level of quality are not common in the Milan real estate market, which had both positive and negative ramifications for the developer. It was positive in the sense that the property stood out and was attractive compared with other office space on the market, but this narrowed the market so that only a select profile of businesses could afford to lease it. Overall, however, the commitment to high-end design resulted in attracting a major tenant before construction was completed.
Having six separate contractors working on the project created coordination challenges. A model based on a generalcontractor supervising all work would have moved some of these coordination issues into a forum where theypotentially could have been accommodated easier. This change, however, would have limited Hines’s direct influenceon the construction process, potentially limiting flexibility during the construction phase.
PROJECT DATA
BUILDING TYPE
Class A mid-rise office building complex
LAND USE INFORMATION
Site area (hectares/acres): 0.5/1.2Gross building area (square meters/square feet): 29,500/317,538Net rentable area (square meters/square feet): 19,700/212,050
LAND USE PLAN
Use Area (Square Meters/Square Feet)
Buildings 22,500/242,190
Paved areas (including surface parking) 2,300/24,757
Landscaping/open space 4,700/50,590
Total 29,500/317,538
OFFICE INFORMATION
Percentage of net rentable area occupied: 100Number of tenants: 1Tenant size (square meters/square feet): 19,700/212,050Monthly rental range (per square meter/square foot): €�28 to €�37/€�2.60 to €�3.44
Length of lease: 12 yearsTerms of lease: usual terms per Italian civil codes
DEVELOPMENT COST INFORMATION
Site acquisition cost: €�26,450,000Construction costs: €�31,580,000Soft costs: €�2,430,000
Total Development Costs: €�77,200,000* Includes financing, leasing, general and administrative, marketing, taxes and insurance, and tenant improvements.
DEVELOPMENT SCHEDULE
Public tender bid awarded to Hines: December 2000Site purchased: December 2000Renovation began: March 2002Building fully leased: August 2003Renovation completed: fall 2004Site sold to Signal Property Fund: May 2005
DIRECTIONS
Directions from Milan Malpensa International Airport: Follow signs from the airport to Highway Number 8 southeast toward Milan. Exit Highway 8 onto Highway T1/50 south before reaching the city. Turn off the highway at exit number 5, Nuovo Vigevanese (second off-ramp at exit 5 to east on Nuovo Vigevanese). Nuovo Vigevanese turns into Via Lorenteggio, which then becomes Via Vicenzo Foppa after Piazza Simone Bolivar. Make a right onto Via California, which turns into Via Bergognone after Piazza Giovanni Antonio Bazzi. The project is located four blocks south of Piazza GiovanniAntonio Bazzi at Via Bergognone 53.
DIRECTIONS VIA METROPOLITANA DI MILANO
Directions from Milan Metro: Take the M2 line from the city center toward Abbiategrasso and get off at the Porta Genova F.S. stop. Upon leaving the station, find the above-ground bridge that leads across the railway and down onto Via Tortona on the opposite side of the tracks. Turn left onto Via Tortona (going southwest, away from the city center) and proceed three blocks to the intersection of Via Bergognone. The project is located at this intersection.
Kelly Nelson, report authorJason Scully, editor, Development Case StudiesDavid James Rose, copy editorJoanne Nanez, online production manager
This Development Case Study is intended as a resource for subscribers in improving the quality of future projects. Data containedherein were made available by the project's development team and constitute a report on, not an endorsement of, the project byULI–the Urban Land Institute.
Copyright © 2006 by ULI–the Urban Land Institute1025 Thomas Jefferson Street, N.W., Suite 500 West, Washington D.C. 20007-5201
Bergognone 53 is a five-building, 22,000-square-meter (235,000-square-foot) office complex created by Hines?s redevelopment of Milan?s main post office adjacent to the city?s historic center.
Before the renovation began, the buildings seen along Via Bergognone were clad in dark glass and gray concrete, giving the complex a closed and anonymous expression.
The buildings, as seen from Via Bergognone after project completion, have been given an open, distinct, and contemporary expression. The facade along Via Tortona has been rendered in a vibrant red and the facade along Via
Bergognone has been fitted with two transparent layers of glass.
Before renovation, the 1960s-era facade along Via Tortona was rendered in a cold, gray finish with strip windows on eachfloor.
With the intention of upgrading the building?s original expression along Via Tortona, the design team added a red stucco facade that is punctuated with new windows.
The entry lobby is located at the interface between the building on Via Tortona and the building on Via Bergognone.
The main entry to the complex was created by removing part of the five-story building where it previously connected to the nine-story structure on Via Bergognone. The entry is an open, glass-clad space that provides a glimpse into the inner
courtyard.
The main entry viewed from the courtyard displays the glass access bridges from the lobby and the courtyard?s glass canopy.
The courtyard provides access to all four structures in the complex and is covered by a glass canopy. The canopy is a catenary?cable-suspended?system hung on the original buildings, which were structurally reinforced for the purpose.
On the rooftop of the building facing Via Bergognone sits the solar energy plant; visible below is the courtyard canopy connecting the four structures.
The double facade on the building facing Via Bergognone screens the sun and acts as additional acoustic insulation. The solar energy plant is visible on the roof.
Typical view of the interior fitted with individual offices.
Typical view of the interior fitted with cubicles, which have a light and transparent design.
The new glass facade along Via Bergognone reflects both the foliage on the square and the older, more typical Milanese architecture of the building across the street.
Bergognone 53 as seen from the square demonstrates the buildings? relationship in color, scale, and materials to the lush square and neighboring structure.
Site plan of Bergognone 53 showing building footprints.
Site plan showing Bergognone 53?s interconnected roof system.