The Italian Real Estate Market in May

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According to a survey by Mycredit on about 500 brokers aimed at assessing the impact of Covid-19 on the real estate market, the pandemic is likely to be followed by a declining trend of prices and the demand, although only in the short term. Commercial and industrial assets will be the most impacted by the crisis, while prices are likely to rise for residential properties.

EY estimates that the NPL operations will amount around 39 billion euro in 2020 and forecasts an expansion of the secondary market activities.

Scenari Immobiliari reports that residential transactions are expected to drop to 83 billion euro in 2020 from the previous 96 billion registered in 2019. The restart of the market heavily depends on the income of the households, which had suffered the closure of many businesses. Transactions, however, are expected to resume growing in 2021 (100 billion).

Offices

Kryalos acquired on behalf of Allianz an office building in Milan city centre for 140 mln from Crédit Agricole with a sale and leaseback operation. The asset develops over six floors for a total gross surface of 10,800 Sqm. Crédit Agricole will continue occupying the building.

Vittoria Assicurazioni has recently completed an acquisition from York Capital and Stoneweg for a total value of 400 million euro. The operation concerns two assets in Rome and Monza and a 51% share in the Pegasus Fund, which holds the Eni HQ Palazzo Quinto in San Donato Milanese. Meanwhile, York Capital and Stoneweg acquired from Vittoria Assicurazioni four real estate developments consisting of 60 units in Parma, two complexes in Rome, and 200 units already built in Peschiera Borromeo (Milan).

In Rome, Tristan Fund sold an office building to Corum AM for an undisclosed amount. The asset is currently let to Colt Technologies.

Banks

Illimity Bank acquired a portfolio composed of mortgage loans and participating financial instruments from Tre Holding for a total of 130 million euro. The portfolio consists of credits of 13 Italian and foreign banks towards Tre Holding concerning assets leased to a luxury brand. Illimity entered with Tre Holding a medium-long term debt restructuring agreement for the duration of 5 years aimed at consolidating the company’s finances.

Retail

Margherita Distribuzione, which is working on the integration of Auchan into Conad’s retail network, put 25 assets for sale. The shopping centres have a catchment area of about 10 million people. The portfolio includes two prime assets such as Porta di Roma (97,000 Sqm and 250 stores) and the Rescaldina shopping centres (30,000 Sqm and 77 stores).

Hospitality

CitizenM completed its first acquisition in Italy with an asset in Rome city centre to be converted into a four-star hotel of 160 rooms. The property has a surface of 7,000 Sqm and three floors above ground.

Logistics

Kryalos Sgr acquired five Cash & Carry warehouses from BNP Paribas REIM Italy SGR. The warehouses are leased to Docks (Carrefour group). Four assets are located in Piedmont, specifically in Turin, Novara, Nichelino (TO) and Burolo (TO), and one is in Vado Ligure, Liguria. The assets have a GLA of over 37,000 Sqm.

Moreover, Kryalos also completed the acquisition of four last-mile logistics assets near Florence for a total GLA of approximately 58,000 Sqm. The assets are leased to tenants operating in the logistics, fashion and industrial sectors.

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