1 week ago
32
AC Milan and Inter are ready to take a crucial step toward their new stadium: finalising the purchase of San Siro and the surrounding areas from the City of Milan.
According to Milano Finanza (via MilanNews), the deed could be transferred on Thursday October 30 or the day after. However, it’s possible it could be postponed until early November, in order to get the final details in order.
It’s worth remembering that the final deed must be completed by November 10, the day the constraint on the second tier of the San Siro stadium kicks in, preventing its demolition.
Financing the project
Milan Finanza adds that Milan and Inter are now ready to take steps forward in their stadium plan, even financially: “The San Siro deal would be structured in three steps, tied to the project phases, as is customary for real estate transactions of this scale.
“First, a bridging loan to be repaid in two or three years, which would cover the stadium’s purchase price (€197m) and related expenses [including the costs of the design entrusted to Foster + Partners and Manica].
“Second, a large-scale loan to be agreed in the coming years – around 2027, when construction is expected to begin – which should cover almost the entire cost of building the new San Siro, estimated by the two clubs at around €1.5bn.
“Finally, a final long-term refinancing agreement to be agreed around the inauguration of the new stadium, which, according to rumors, could be largely funded by private debt.”
Regarding the bridging loan, there is reportedly strong interest in participating in the operation, so much so that an oversized pool has been formed. There is talk of four or five banks, two or three of which are foreign (such as Goldman Sachs, Bofa Merrill Lynch, JpMorgan, and Mitsubishi Financial Group) and two Italian (the most credible is Banco BPM).
Regarding the mega-loan and the latest long-term refinancing, Milano Finanza writes: “The dialogue between Milan and Inter and the banks will continue in the coming years. According to rumors, the composition of the banking pool could also change with the second step of the operation, the mega-loan.
“Currently, the plan calls for financing the €1.5bn operation almost entirely through debt with banks, thus excluding minority shareholders. Finally, the third step, the takeout loan, effectively a long-term refinancing of the construction loan.
“According to rumours, only at this stage could private debt enter the game, perhaps of US origin given the nationality of the team owners.”
English (US) ·