Wednesday, September 23, 2020

The Italian Real Estate Market in July

Residential

Istat reports that the IPAB Index, which measures the prices of properties bought as main residence as well as investment, grew by 0.9% in Q1 of 2020 compared to the previous quarter and by 1.7% compared to the same period of 2019.

Meanwhile, transactions sharply decreased (-15.5%) due to the measures adopted to contain Covid-19. However, this gap between increasing prices and declining sales did not have any relevant impact on the prices of residential properties since these were agreed before the pandemic started.

Offices

Orion Capital Managers entered an agreement concerning the acquisition of a development in Milan for 100 million where the private equity company plans to develop offices for a total leasable area of 27,600 Sq m. The project is part of the SeiMilano project by Värde Partners and Borio Mangiarotti covering a 300,000 Sq m area.

Banks

Unicredit sold NPLs for 477 million to Illimity and 255 million to Guber Banca and Barclays Bank, for a total of 702 million euro. The operation exclusively concerns unsecured loans towards Italian SMEs. Meanwhile, Illimity issued senior financing for 11 million euro. The funding is guaranteed by an NPL portfolio mostly composed of corporate loans.

Retail

Kryalos announced the sale of Primavera shopping centre (11,980 Sq m) in Rome to a group operating in mass retailing. The exit yield of the transaction amounts to approximately 6%.

Hospitality

In Milan, Rocco Forte Hotels entered an agreement with Reale Group concerning the restructuring of the Baglioni Hotel Carlton and the consequent inauguration of the Carlton Milano in 2023. The works are expected to start in 2021.

In Rome, Bulgari has recently presented its project for a new luxury hotel not far from its store in Via Condotti. The hotel will offer 114 rooms and will open in 2022.

Logistics

Scannell Properties announced the acquisition of land to develop the logistics hub Logisticairpark in Bologna, expanding in this way its presence in Italy. The asset will be built according to the built-to-suit principles, allowing to adjust to the tenant’s requirements. The hub will cover a 160,000 Sq m area conveniently located near Bologna airport, as well as the city and the major highways.

B-Exclusives

The Details of the 102 Residential Plots Being Sold by the Community of Madrid

The regional government is going to put 240 publicly owned plots up for sale, of which 102 are for residential use. The jewel in the crown is a plot spanning more than 32,000 m2 in the heart of the Salamanca district.

How Covid is Affecting House Prices: Map of the Decreases by District

The coronavirus crisis is causing house price decreases of up to 70% in some municipalities in Castilla La-Mancha, the Community of Valencia and Andalucía.

Property Developers Launch Large Urbanisations Post-Pandemic

Between April and August, work began on 996 developments in Spain with the ten largest comprising 1,691 homes. Of those ten, which are located in Madrid, the Basque Country, the Community of Valencia and Andalucía, four are being built by Amenabar.

Fearless Despite the Crisis: Property Developers Start Work on More than 27,000 New Homes Since April

Between April and August, work began on a total of 996 developments and 27,882 homes in Spain, according to data from the real estate big data platform Brains RE, with Amenabar, Habitat and Aedas the most active players.

Latest news

Metrovacesa Launches a Share Purchase Plan for its Land Subsidiary

The real estate firm is offering MPyA's shareholders 0.1152 euros per share in cash or shares in its parent company in the ratio of 143:1.

The State and Pryconsa Will Build 600 Homes on the Site of the Former Prison in Carabanchel

After several years on the backburner, the urban project to develop Carabanchel's former prison, where 600 houses will be built, is going ahead. The land has a surface area of more than 170,000 square metres.

Cataluña’s New Rental Law Entered into Force Yesterday

The new law that regulates rental prices in the 60 Catalan municipalities that have more than 20,000 inhabitants came into force on Tuesday.

The Pandemic Leaves the Sale of Shopping Centres Up In The Air

The owners of shopping centres are holding back on the sale of their large establishments due to the difficulties involved in agreeing prices between owners and investors.