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Two Venice Lido landmarks to be renovated

U.S. investor Hines Real Estate Investment Trust plans to lead a US$380 renovation project of two historic hotels in Venice, the Hotel Excelsior and Grand Hotel Des Bains on Venice Lido, according to a Bloomberg report.

Hines Italia SGR, a venture between the Houston-based Hines and Italian investor Manfredi Catella, plans to redevelop and manage the hotels on Venice’s famed Lido for the privately held Real Venice 1 fund. As part of the plan, the company will renovate a state-owned hospital next to the hotels as a residential and tourist property for Italy’s sovereign wealth fund.

Bloomberg reported the project shows how private companies can work with the state to generate income from the real estate it owns, according to Catella. Prime Minister Matteo Renzi is targeting disposals of about €500 million (US$632 million) a year to help trim the country’s €2.2 trillion (US$2.8 trillion) of debt.

Hines Italia is in the process of identifying both investment partners and operators for the project, according to Catella. Investors would become stakeholders in the development, receiving a share of its earnings.

Last month, the government passed several decrees under the title “Unlock Italy” to foster investment. It includes steps to transform the real estate investment trust industry to mirror changes made by Spain that encouraged investors to purchase property assets in the country.

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