Saturday, January 16, 2021

The Italian Real Estate Market in December

Amalfi Coast

PwC estimates that the financial market will likely register the real impact of the pandemic in 2021. Moratoria, guaranteed loans and redundancy funds have supported the economy so far, avoiding banks’ NPL stocks to grow in excess. For this reason, 2020 is expected to close with non-performing exposures totalling 115-120 billion € compared to 135 billion € as reported in December 2019.

Meanwhile, Cushman & Wakefield forecasts that the Italian hospitality industry will fully recover from the pandemic in 2022-2023. Tourist destinations like Costa Smeralda and the Amalfi coast are expected to recover in 2022. Meanwhile, Rome, Milan, Venice and Florence are still seen as the top cities by investors and hotel managers, although the market is likely to restart only in 2023-2024.

Offices

DeA Capital Real Estate SGR, in partnership with Ardian, acquired Mps real estate assets for 300 million €. The portfolio includes 26 assets for office use, mainly located in Milan and Rome city centres, covering a total commercial surface of 90,000 Sqm.

Aquileia Capital Services sold on behalf of Immobiliare Stampa an entire building in Rome for 51.2 million €. The trophy asset is currently let to Banca D’Italia and covers a 5,000 Sqm surface. Always in Rome, Kryalos finalized the sale to Corum AM of a fully let building in the Laurentino area covering 8,000 Sqm.

In Milan, Kryalos SGR completed the acquisition of two office assets from Covivio for an undisclosed amount. The asset manager also purchased an office building in Bicocca business district consisting of two floors and covering a 12,000 Sqm area.

Finally, Aquileia Capital Services sold a building in Palermo, which accommodates offices as well as shops on the ground floor, for a total surface of 2,300 Sqm.

Banks

Illimity Bank acquired from Banco Bpm credits for a nominal value of 21 million €. The credit lines refer to the company Barberis Group, which operates in construction and real estate development. The operation concerns UTPs connected to a residential development project near Savona. Illimity will provide further funding for 7.3 million € to complete the works.

Retail

Kryalos sold for 246.7 million € Palazzo delle Poste in Piazza Cordusio, Milan, to a club deal of investors coordinated by Mediobanca. The building’s retail space is currently let to Starbucks.

Hospitality

A new The Student Hotel has been recently inaugurated in Bologna. The facility offers 361 rooms and currently accommodates 180 students, mainly foreign. The hotel will be open also to tourists starting from January 2021.

Logistics

Through an operation financed by BPER, Sagitta sgr (Arrow Global Group) acquired office and industrial assets near Bologna from Mint Street Holding. The assets are all leased through a 15-years contract to IMA Group, a leading company in the packaging machines sector.

Always in Bologna, Hines announced its first acquisition in the logistics sector with an off-market operation concerning a land plot, where it plans to implement two adjoining assets covering respectively 37,000 and 45,000 Sqm by June 2022.

BNP Paribas REIM Italy SGR acquired two logistics assets in Italy for 50 million € in total. The first acquisition concerns a logistic hub near Frosinone covering a surface of 30,000 Sqm. The second asset is located in the province of Bergamo and covers 27,500 Sqm. Both properties are fully leased.

Alternative

Antirion SGR acquired an assisted living facility in Bologna for 10 million €. The facility offers 100 beds and is located near the central station.

Meanwhile, REAM SGR acquired from FCA Partecipazioni a medical clinic in Turin leased to CeMeDi.

Finally, in Varese, Aquileia Capital Services sold on behalf of Immobiliare Stampa a property accommodating the Carabinieri barrack and residences for 2.65 million €. The asset consists of two buildings and covers a total surface of over 6,000 Sqm.

B-Exclusives

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The Covid-19 crisis has come at a time when the prices of commercial premises have not yet recovered from the previous recession, the consequences of which lasted for five years.

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