ARIA

Immagine descrittiva del progetto ARIA
Project box

Geographical area: Europe

Location: Milan, Italy

City size: Large (between 1,000,000 and 5,000,000 inhabitants)

Promoter: Municipality of Milan

Developer: Redo Sgr

Start year:

End-year:

Implementation phase: Implementation in progress

Project size: Neighborhood

Total area of intervention (in sqm): 150.000

Total investments (in USD): 97.8 million

Project overview

The ARIA regeneration project aims to transform the former Macello (slaughterhouse) site in Milan into a vibrant new neighbourhood with residential, commercial, social, and educational functions. The initiative seeks to reconnect and reinterpret the historic area through contemporary architecture, preserving its heritage while integrating innovative and sustainable solutions. Covering an area of 150,000 sqm, the site is located in the south-east of Milan. Strategically positioned near a railway station and well served by suburban transit lines, the site enjoys strong connectivity to the rest of the city and to the broader metropolitan transport network. 

The site, built between 1912 and 1914 as part of the wholesale market district, housed the municipal slaughterhouse and the rabbit market. Beginning in the 1980s, operations were gradually phased out and fully discontinued between 1995 and 2005. After its closure, ownership was transferred from SO.GE.M.I.—the municipality-owned market operator—to the Municipality of Milan. 

The Municipality subsequently issued a public tender for a 90-year concession, subject to an initial single payment through the Reinventing Cities initiative, aimed at selecting a redevelopment proposal for the area. The Reinventing Cities initiative is a global competition for innovative, zero-carbon and resilient urban regeneration projects. The operation took place in 2021: the winning proposal was the ARIA project submitted by Redo Sgr in partnership with Delta Ecopolis CCL, IED (Istituto Europeo di Design), CA Ventures, E.ON, and other supporting partners, all united by a strong commitment to sustainability and net-zero targets. The redevelopment is financed by Fondo Immobiliare Lombardia (FIL), managed by Redo Sgr, with an investment of approximately USD 97.8 million to cover the concession cost. 

The area remediation began in 2022, with requalification works scheduled to start in 2024, and expected to last from 18 to 24 months. Project completion is anticipated between 2026 and 2027. The architectural design is led by Snøhetta Oslo as the principal architect, supported by a multidisciplinary team including Barreca & La Varra, Stantec, CZA Cino Zucchi Architetti (responsible for the IED campus), Chapman Taylor Architetti, Mpartner, and Fondazione Housing Sociale. 

The ARIA project is envisioned as an urban transformation that builds upon the site’s historical and morphological identity, deconstructing and reassembling the former galleries, hangars, warehouses, and production facilities. During its construction phase, the area hosts a series of recreational activities aimed at overcoming the site's history of segregation and abandonment, laying the foundations for the creation of an active neighborhood community. The area is designed as a dynamic neighbourhood animated by a mix of educational, recreational, and residential activities, driven by a strong commitment to art, culture, creativity, and social inclusion. The development will provide 1,200 new rental apartments at a controlled price as part of a broader social housing initiative that includes alternative housing solutions and a student residence serving the new international campus of IED University. The area allocated to the campus occupies 30,000 sqm and is envisioned to accommodate around 4,500 students. The site will be complemented by the POD (Point of Disclosure) Science and Art District, a museum dedicated to the production and dissemination of scientific knowledge. The neighbourhood is designed to integrate a wide range of community-oriented services—such as a public park, offices, urban gardens, playgrounds, artisanal shops, and coworking spaces—fostering a vibrant ecosystem for living, studying, working, and creating.

The ARIA project is located in the southeast quadrant of Milan in the 150,000 sqm of Ex-Macello area, and it is designed to generate a mixed-use district combining residential, commercial, recreational, Educational and Transportation areas. The residential component consists of 60,212 sqm of intergenerational collaborative social housing, of which 60% will be rented at regulated rates and 40% will be sold at subsidized prices, complemented by 13,000 sqm of student housing for up to 500 people, 7,000 sqm of market-rate housing, and up to 30,000 sqm of additional free residential functions. The commercial dimension will include the FabLab, a 1,800 sqm facility dedicated to digital production, coding and robotics; 2,000 sqm of proximity services such as a medical center, a mobility hub, a neighborhood concierge service, a Memory Lab, community welfare services, and an arts and crafts studio (Bottega delle Arti e dei Mestieri) aimed at introducing people to the job market; spaces for the tertiary sector, commercial activities and hospitality; and finally 4,000 sqm of retail integrated within the residential area to provide basic neighborhood services. Recreational spaces will feature the POD Science District, a 6,500 sqm museum dedicated to scientific dissemination. The educational functions will include the new IED campus, a 30,000 sqm research and educational center focused on design, fashion, visual arts and communication, alongside an additional 2,000 sqm dedicated to educational services such as a kindergarten and after-school facilities for children. Finally, from the mobility perspective, the project envisions the realization of more than 50,000 sqm of bike and pedestrian lanes to promote sustainable transport and accessibility. 

Benefits

From an economic perspective, the ARIA regeneration project is expected to deliver significant benefits to the community. These benefits include the enhancement of real estate values, the stimulation of the regional and municipal economy, the creation of new employment opportunities, and the generation of additional tax revenues for public institutions.

The transformation of the site into a vibrant and accessible district is projected to increase real estate values both within the site and in the surrounding areas. The development of a multifunctional neighborhood—integrating commercial spaces, residential areas, and educational facilities—will enhance the attractiveness of the district and encourage the arrival of new residents. By providing essential services, amenities, and opportunities for social interaction, the project aims to improve the overall quality of life while simultaneously generating long-term economic value.

Economic benefits are expected not only during the operational phase but also throughout the construction process. The project prioritizes the involvement of local companies, thereby supporting the regional economy, and requires that at least 30% of construction materials be sourced within a 160 km radius.

The introduction of new and mixed activities (commercial, educational, cultural, etc.) is expected to increase employment across multiple sectors. The ARIA district is projected to generate approximately 30,000 direct and indirect jobs and to support the establishment of 40 new services and activities. The focus on sustainability will further contribute to the creation of 1,500 green jobs within the site. Redo (the project developer) demonstrates its focus on employment by allocating 14.23% of the social housing development budget to workforce-related costs, such as jobs, training, and labor services. The resulting job expansion is expected to benefit sectors such as property and facility management, community services, and public and commercial operations.

Finally, the Municipality of Milan will benefit directly through land concession revenues and the tax income generated by new residents and economic activities within the district, ensuring a stable and long-term source of public revenue.

From an environmental perspective, the ARIA regeneration project places a strong emphasis on the environmental aspects, from energy efficiency, resource efficiency, circularity, waste management, and finally, greenhouse gas reduction and biodiversity. 

The project is designed to achieve the highest standard of energy efficiency. To this purpose, the site will feature over 36,000 sqm of photovoltaic panels. The district promotes a prosumer approach, which enables residents and businesses to both consume and produce energy autonomously. The system is designed to produce more energy than is consumed on-site, with the surplus fed back into the grid. In the future, it is planned to create a proper energy community involving residents and businesses located in the area. 

The district will be equipped with a fifth-generation heating system based on Ectogrid technology, supplied by E.ON, which is expected to reduce energy consumption by 15% compared to Milan’s baseline. To further lower demand, buildings will incorporate thermal insulation covering at least 25% of their surface area. In addition, rooftops not occupied by solar panels will be predominantly green, providing natural shielding against solar radiation, enhanced thermal insulation, and the ability to attenuate and delay heat flux. The district will also benefit from geothermal energy.

Looking ahead, the energy systems are designed to be integrated with the nearby SO.GE.MI market area. This integration is projected to achieve an additional 40% reduction in energy consumption, equivalent to 1,736 MWht per year, ultimately contributing to the goal of eliminating the use of primary non-renewable energy.

In terms of resource efficiency, the project prioritizes the restoration of existing buildings. By reusing over 30,000 square meters of built surface, the project avoids the production of more than 4,500 cubic meters of reinforced concrete, equivalent to approximately 2,160 tonnes of CO₂ eq. This approach is complemented by the adoption of sustainably sourced materials. According to these guidelines for its construction, the site used 12,392 cubic meters of structural timber and 36,775 cubic meters of eco-cement. These choices enable ARIA to reduce greenhouse gas emissions during the construction phase by as much as 54% compared to a Business-As-Usual (BAU) scenario, with reductions reaching up to 84% for structural floor slabs. The LCA analysis of the project reveals that these building techniques contribute to 90% of the project’s emission reductions.

Resource efficiency will be further enhanced through effective waste management, focusing on reuse and recycling. The project aims to reduce the amount of waste generated per person by at least 16%, and to achieve a minimum of 75% in separate waste collection. Waste reduction and resource awareness will also be supported through the introduction of a Circular Housing service, which offers residents the possibility to rent furniture and household appliances. This approach helps to minimize environmental impacts, particularly at the end of the product lifecycle. Additionally, the site will provide a Fab Lab to promote a culture of repair and reuse, encouraging residents to actively participate in sustainable practices.

Nature-based solutions will be adopted to mitigate thermal shocks and the urban heat island effect through measures such as re-naturalization, green roofs, water features, and rainwater recovery systems. 100% of the rainwater will be intercepted and either stored or drained, with a maximum storage capacity of 14,207 cubic meters. The site will develop 44,512 sqm of permeable surface thanks to 56 integrated solutions for resilience and mitigation of stress and shocks, therefore saving 140,000 mc of drinkable water yearly. 

Finally, the site will develop the so-called Fabbriche dell’Aria, areas deputed to air purification thanks to soil and plants, which become social areas for residents. The entire site will host more than 29,700 sqm of urban park featuring 2,000 trees, 96% of which are already present on the site. 

ARIA demonstrates a strong commitment to the social dimension by prioritizing quality of life for both residents and visitors. These aspects are promoted through the enhancement of social inclusiveness, the provision of digital innovation, and the focus on sustainable mobility.

The ARIA project integrates mixed functions, offering newcomers a wide range of activities and services, complemented by wide green areas that foster social interaction and well-being across the district. Alongside residential spaces, the site will host a variety of proximity services designed to support and enhance the everyday life of both residents and the wider community. These include a medical center, educational facilities such as a kindergarten, a mobility hub, a neighborhood concierge, a memory lab, and dedicated spaces for social inclusion.

The project’s positive social impact is further reinforced by cultural diversity promotion through the organization of community events that encourage interaction, knowledge exchange, and shared experiences. During the site’s construction phase, the area activated temporary uses, and in 2023 these initiatives attracted 300,000 visitors, hosted 51 public events, including assemblies and guided tours, and involved collaborations with organizations such as Fondazione Housing Sociale, Fabrique, BlackBox, and Mare Culturale Urbano.

 In addition, the project’s design supports a socially diverse environment, enabling people of different ages and socio-economic backgrounds to coexist and interact. This is achieved through the realization of different typologies of residential units designed to satisfy the multiple needs of those who will join the area, enhancing the diversity of the residents within the site. Particularly, ARIA offers flats, cluster flats, co-social residences, co-living, atelier-style accommodations, and cluster flats for the elderly. 

Social inclusion is also reached through the release of residences at affordable rental rates. New apartments will be available for rent and for sale at regulated rates, with sale prices below USD 3,540 per square meter and monthly rents around USD 654 for a 70 sqm apartment. Families moving to the district will benefit from rental prices approximately 30% below market rates. Additionally, the adoption of sustainable principles, combined with the forecasted establishment of an energy community and energy efficiency systems, is projected to result in USD 234 million in savings for residents and tenants.  

To promote low-impact mobility and support a more sustainable urban lifestyle, the project encourages the use of electric vehicles, bicycles, and shared mobility systems, both within the neighborhood and in connection with the broader city. A comprehensive strategy has been developed to support this vision, including the creation of bike and pedestrian lanes, the enhancement of public transport services, the introduction of a shared electric vehicle fleet, and the strengthening of car and bike sharing systems. Additionally, incentive-based mechanisms will be implemented to encourage the adoption of new mobility behaviors. Mobility planning is further reinforced by an innovative parking system, designed to be flexible and adaptable to future changes in transportation habits. This system allows for the repurposing of parking areas as mobility needs evolve, ensuring long-term sustainability and efficient land use. The expected shuttle in the neighborhood will be provided with special charging solutions that will avoid the necessity to install charging stations, reducing the amount of space consumed and dedicated to parking lots. This commitment to sustainable transport is further reinforced by the integration of digital solutions, designed to optimize and monitor the mobility sharing mechanism. Comprehensively, those measures will lead to a 30% reduction of emissions due to transportation.

ARIA is envisioned as a digitally advanced neighborhood that permeates urban management and energy services. This includes the integration of digital twins, a virtual replica of physical systems, which allow real-time monitoring, simulation, and optimization of urban and energy processes that enhance operational efficiency and promote sustainability. Specifically, ARIA will operate as a smart district, deploying automation technologies, smart metering solutions, and advanced monitoring tools. Additionally, Next Generation ESG Contracts will link actors and stakeholders to ARIA’s digital infrastructure and monitoring systems, tracking their value chains and assessing their sustainability. This ecosystem fosters a conscious and collaborative local alliance, empowering stakeholders to actively contribute to climate goals. The management of the district is primarily facilitated through the REDO app, an integrated platform that connects multiple aspects of neighborhood life. The app provides real-time information on available spaces and services, enables booking of shared facilities, monitors district-wide energy consumption, and supports environmental stewardship by promoting sustainable practices. To further engage users and raise awareness of sustainability issues such as waste management, the REDO app will incorporate gamification techniques, encouraging active participation and behavioral change. The adoption of smart technologies will influence various aspects of daily life within the district, from energy and waste management to environmental monitoring, enabling continuous tracking of improvements across ARIA.

Aria will certify the buildings as LEED Gold, the masterplan under LEED for Cities & Communities, and will assess integrated smart solutions using the ReSMART Index. The ReSMART Index is the methodological framework of the Responsive and Smartness Index for Real Estate, developed by Planet Smart City and Arup. This composite indicator evaluates innovative solutions based on their ability to address 53 types of shocks and stresses.

Finance model

The project is privately financed by Redo Sgr, which paid USD 105.4 million to the Municipality of Milan for the land concession. In addition, approximately USD 545 million will be invested in the site’s redevelopment. To fund the initiative, Redo Sgr relies on the Fondo Immobiliare Lombardia (FIL) Comparto 1, a closed-end multi-compartment real estate investment fund specifically dedicated to social housing in the Lombardy region. The fund’s investors include both private and public entities, namely Fondazione Cariplo, Intesa Sanpaolo S.p.A., and CDP S.p.A. Co-investors in the ARIA project also include Cooperativa LUM, CCL, CA Ventures, and E.ON.

The land was granted to Redo Sgr through a 90-year concession agreement with the Municipality of Milan. To finance the regeneration project, ARIA relies on an investment fund that combines both private and public capital. The site benefits from a buildability ratio of 0.35 sqm/sqm, complemented by an additional 68,494 sqm of gross floor area transferred from the Cascina Merlata project. This transfer brings the total developable floor area to 120,424 sqm. The above-mentioned density bonus is an urban planning tool where municipalities permit developers to exceed standard zoning limits for density in exchange for providing community benefits. In this case, at least 30% of the total surface must be transferred to the Municipality as land dedicated to community use. New developments within the district are subject to planning permits as well as the payment of urbanization charges and construction cost contributions. However, exemptions from these charges apply to social and subsidized housing projects, as well as to the restoration of historic buildings.

References and Credits

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Pizzirani, E. (2023, April 11). Redo sgr, gestore di fondi immobiliari, ha acquistato l’area comunale dell’ex Macello di Milano per 90 mln di euro. BeBeez. https://bebeez.it/real-estate-2/redo-sgr-gestore-di-fondi-immobiliari-ha-acquistato-larea-comunale-dellex-macello-di-milano-per-90-mln-di-euro/

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https://aria.redosgr.it/