The Italian Real Estate Market in July

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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

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