Jan 4, 2019
Prada to remain in Milan’s Galleria for 2.2 million euros a year
Jan 4, 2019
The Galleria Vittorio Emanuele II continues its record breaking streak. After Saint Laurent offered a million euros a year in rent for a space in the sought-after retail location last summer, the Milan City Council has now approved the guidelines for the renewal of Prada’s lease in the Galleria Vittorio Emanuele II.
Moreover, there will be no opportunity for other businesses to bid and make a higher offer this time because it was judged a matter of public interest that Prada remain in the building. The luxury brand has resided in the building since 1948 and the municipality judged that it possesses a special value and history.
“The Prada brand has been resident in the Galleria since the 1920s,” explained Roberto Tasca, a public property assessor. “It was therefore necessary to renew the lease as the shop is part of Milan’s cultural and historical heritage.”
The new rental contract will be good for the city’s economy considering the economic value of the state’s growing property portfolio, which is needed to support the government’s reduced budget.
The new rental price of the Prada store, which measures over 1,500 square metres spread over three floors and with windows overlooking the Ottagono, will be 2.2 million euros a year up from 520,000 euros previously. The contract will have a duration of 12 years and the value of the new rental price was not calculated based on Agenzia Della Entrate (1,760 euros per metre squared) but based on an agreement between the municipality and the business Fratelli Prada.
The agreement values the space at 1,849 euros per metre squared and is the same rate that Prada pays for its other boutique in the Galleria, which was won following an intense bidding war in 2013.
Prada has been present in the Galleria since the 1920s and, in its current location within the Galleria, the fixtures and design have been maintained under the guidance of the Soprintendenza, and through the accord, the space became the property of the city of Milan.