The Italian Real Estate Market in Febrary

Amco estimates that new non-performing exposures for 60-100 billion € will impact the Italian banking system in the next two years due to the pandemic.

For what concerns hospitality real estate, according to EY, investments will reach approximately 1.5 billion € in 2021, registering a slight increase from 2020 (-68% from 2019). However, transactions are being closed at discounted prices (5-10% less for luxury hotels and 25-30% for the other segments), while the market is expected to fully recover only in 2023.

Residential

Proiezioni Future, the joint venture of Borio Mangiarotti and Värde Partners, sold to Invesco Real Estate the second lot of the requalification project SeiMilano. In an area covering 53,000 Sq m, Invesco will implement 650 apartments for rent distributed among 11 buildings with an investment of 150 million €.

In Milan, AbitareIn signed a preliminary agreement to purchase an area south of Scalo Porta Romana with a buildable surface of about 30,000 Sq m. The purchasing price is set at 16.1 million €, while the estimated earn-out deriving from the residential development is 6 million €.

Offices

In Milan, the Swiss developer Artisa Group AG acquired a 5,000 Sq m building part of Palazzo della Permanente from the Society for Fine Arts and Permanent Exhibition. Artisa will requalify the building and implement office spaces according to the latest sustainability standards.

Kryalos sold a property in Rome, not far from Villa Borghese. The asset consists of a historical villa converted into offices and developing over four levels for 2,278 Sq m GLA.

Finally, the Maison Loro Piana will soon become the new lessee of the building Cortile della Seta, in the Brera district of Milan. The asset was bought in 2016 by Jp Morgan for 80 million €.

Banks

Balbec Capital LP acquired from BCC Centropadana an NPL portfolio amounting to 5.2 million € GBV. The portfolio is mainly composed of secured loans backed by real estate and managed by My Credit Spa.

Hospitality

Arsenale signed the preliminary agreement for the purchase of the luxury hotel de La Minerve in Rome. The hotel, which occupies a 17th-century building, will continue to be managed by the current owner, the Billi family, until the renovation works starting in 2022. It will then re-open under the management of Accor Group with the brand Orient Express.

Always in Rome, Marriott is about to inaugurate its first hotel in Italy under the W brand in September 2021. The hotel will develop over two 18th century buildings not far from Via Condotti.

In Sardinia, Baglioni Hotels & Resorts will manage the five-star hotel Paradise Resort & SPA in Puntaldia. The hotel will be re-branded Baglioni Resort Puntaldia, joining The Leading Hotels of the World, and will open in June 2021.

Logistics

Kryalos Sgr acquired three last-mile logistic assets for 39,000 Sq m in total near Verona (Colognola ai Colli) and Bergamo (Ghisalba and Martinengo). All assets are currently leased to Performance in Lighting, which operates in lighting solutions design and production. The hubs in Colognola ai Colli e Ghisalba will be leased long-term to the current tenant, while the asset in Martinengo will be put on the market.

In Legnano (Milan), the selling price for the former textile factory and cotton mill (Manifattura) went from 21 million € to less than 4 million €. The price reduction is mainly due to the Ministry of Cultural Heritage’s decision to apply restrictions on some of the buildings, likely resulting in better chances to find an investor for the 41,000 Sq m area.

Alternative

In Venice, the historical building Casa dei Tre Oci has been sold by Fondazione Venezia to the Berggruen Institute. Fondazione Venezia has recently sold several of its assets amounting in total to 400 million €.

B-Exclusives

Increased Demand for Houses in Madrid Leaves Supply at Six-Year Low

The demand for houses in Madrid following the coronavirus pandemic reduced supply by 28% in 2020, with interest concentrated on the city’s periphery. However, Moncloa-Aravaca still has the most detached properties for sale in the capital, according to Brainsre.

Where are the Highest Housing Yields in Madrid and Barcelona?

According to Brainsre, buying a property to let is currently yielding a gross profit of 4.6% in Madrid and 4.1% in Barcelona, the lowest value in the last five years.

A Snapshot of the Spanish Residential Market

Between March and December, the supply of single-family homes fell by 12%, falling twice as quickly as that for flats, due to a sharp increase in demand, according to Brainsre.

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