One of Italy’s top real estate figures is facing questioning in a corruption probe that could ultimately result in his arrest.
Coima SGR chief executive officer Manfredi Catella could face arrest as part of a wide investigation into alleged corruption regarding property developments in Milan, people familiar with the situation told Bloomberg.
Catella acknowledged the “ongoing investigation” into a project assigned to an architect who was on Milan’s landscape commission until last year. Investigators are probing whether the architect’s role at Coima influenced his actions at the commission.
“We have promptly provided what requested, and conducted internal checks to review compliance,” said Catella.
Police raided offices and homes throughout Milan last week, in pursuit of developers, architects, public officials and officials in the mayor’s office.
Coima is one of Italy’s largest real estate investors, holding subsidiaries in investment management, development and property management. The company manages more than 30 real estate funds and has roughly $12.3 billion in assets under management.
The firm was formerly the Italian unit of Hines, a subsidiary Catella helped found. He acquired a majority stake in the business a decade ago, rebranding it to Coima SGR. The company’s portfolio includes 88 assets, including offices, homes, warehouses and hotels in Italy. Catella is also the chief executive officer of the larger holding company behind Coima.
Notable projects for Coima include the Porta Nuova district in central Milan. The Qatar Investment Authority helped back that project.
The larger investigation in Milan, centered around planning permits, has prompted a construction freeze in the city, according to Reuters. Residents have complained about the sudden rise in multistory buildings in the last decade.
Giancarlo Tancredi, a Milan city councilmember, is also among those under investigation. Both Tancredi and Catella are among six people set to appear before a judge on Wednesday, where their potential arrests could be determined.
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