An agreement was recently signed by and between Qatar Holding LLC and Porta Nuova, where Qatar Holding LLC would purchase 40% stake in the real estate development in Milan. The cost of the purchase was not disclosed.

The announcement was made by Hines Italia SGR and Qatar Holding last Thursday. The transaction would be done through the subscription of newly issued shares of stock by the Gulf Kingdom sovereign wealth fund unit. The remaining 60% of the shares would be retained by the current sponsors of the project.

Porto Nuova has a projected market value of nearly Eur2 billion or US$2.57 billion.

According to several sources who told Reuters, Qatar was already in discussion with the developer as to the purchase of some or all of the Milanese built Porta Nuova business district as early as April of this year.

Porta Nuova was financed by Italian lenders Intesa SanPaolo SpA, Unicredit and Banca Monte dei Paschi di Siena SpA.