Del Vecchio buys and sells properties in Milan

 

Leonardo Del Vecchio is back on the Milan real estate market. According to the rumours circulating in the market, it seems like that the entrepreneur is about to purchase from Beni Stabili the Luxottica headquarter located in Cadorna Square number 3. The agreed amount should be around one hundred million euro. The matter though is about buyer and seller, since Del Vecchio is a shareholder both of Beni Stabili and Luxottica, and it’s indeed this latter going to make to purchase.

According to the experts, if it had sold the building on the market, instead off market as it’s happening, Beni Stabili would have got 10 million more,

In the industry, there is also the rumour that Leonardo Del Vecchio bought from the joint venture with the American Varde and Borio Mangiarotto one of the properties of the Sforzesco portfolio, a building in the garden of the Litta Palace, right beside the Luxottica headquarter.

Not only, Luxottica is also taking part in the bid for the Edison properties, the “sale and leaseback” coordinated by the merchant bank Lazard, with the intention perhaps to unite all the buildings and make a big hub in Cadorna square. In fact, one of the buildings of the Edison packages borders with the headquarter of Luxottica.

Aermont purchases eight cinemas from the Delta Fund

 

The asset management companies are accelerating the sales of the assets left in the expiring real estate portfolios. With this objective in mind, Idea Fimit has communicated to have accepted the purchase offer for a cinema portfolio owned by the listed fund Delta, fund expiring at the end of the year. This is an irrevocable purchase offer already communicated to the market the 12th June 2017, following the indiscretions coming from Sole 24 Ore. According to the indiscretions of the industry, the proposal is supposed to come from a company that in the past tried a Public Offer on Delta.

According to the rumours, this company is Aermont Capital, which exactly one year ago (11th July 2016) advanced the Public Offer (the third launched by different subjects) through its subsidiary in Luxemburg Mars Grafton.

“In the portfolio, there are eight properties destined to multiplex cinemas, located in Salerno, Bologna, Parma, Turin, Livorno, Torri di Quartesolo (Vicenza), Treviso e Padua – states the communication from the asset management company -. The proposed purchase price is 105,250,000 euro, plus applicable taxes.

The signature of the contract is expected by 31st December 2017”.

Poste Vita invests 2.6 billion in real estate

 

Poste Vita is positioning itself on the real estate market as one of the main players in the industry, with the aim of getting a real investment quota between 2 and 5% of the total assets managed by 2020. Even though we don’t hear talking about it very often, its investments strategy is going on since 2014 with assignments to third parties for consistent amounts. As that one that one year ago went to Ubs Asset Management Sgr whose real estate division incorporated an alternative real estate fund called Ubs-Diamond Eurozone Offices, aimed at investing on behalf of Poste Vita in the European office sector, starting from 300 million euro equity (to which the leverage must be added).

Of these investments in detail, however, we don’t know much. We are trying to explain since Poste Vita will continue investing in the real estate. Marco Plazzotta is leading the real estate compartment of Poste Vita, he’s a veteran of the Italian real estate ( he worked for ten years for Allianz Spa as head of real estate management). The investment strategy that started in 2014 from scratches, implies investing indirectly with two different approaches, one strategic (which represents three-quarters of the total real estate portfolio), and one tactical ( for a third). The target markets are those of the “Core Europe”, United Kingdom and Northern Europe. The diversification goes even further though, investing in USA and Canada in offices and shopping centres.

To implement this investment strategy, Poste Vita has selected, with the help of an International advisor, about ten of the best global fund managers, such as Ubs, DeAam, Cbre Global Investors. For what concerns instead the tactical portfolio, Poste Vita has started investing together with other institutional investors in about ten close-end real estate funds, with the objective of expanding the number of funds and managers.

For the implementation of this complex investment strategy, Poste Vita was awarded the Ipre real estate global award last month, which every year rewards the best practice at global level in the real estate industry of social security agencies, insurance companies and pension funds ( another Italian player that was awarded was Enpam).

Considered that the real estate activities aim at constituting the 2 to 5% of the total asset under management of the company, we are talking about 3-4 billion euro, which are for three-quarters the already mentioned strategic portfolio (with dedicated funds managed by selected managers) and the remaining quarter of the already existing funds where Poste Vita enters with its own share. From an analysis of the 2016 financial statement, we obtain that the total assets under management amount to 370 million euro. To reach the objective stated, therefore, the flow of investments towards the real estate will be very consistent, with a minimum of 2.6 billion additional euro in the next 3-4 years. The strategy for the next three years, according to Sole 24 Ore, should continue, even though the new Ceo Matteo Del Fante will have to take care of it in detail in order to implement the new strategic plan.

They are still to be appreciated instead the maxi real estate assets of Poste Italiane, about 1.7 billion euro for which, under the guidance of the former Ceo Francesco Caio, it was mentioned the possibility of transferring everything to a new society to be listed in Piazza Affari.

Real estate, tourism too is growing

 

Good signals of recovery from beach, mountain and countryside destinations

“Investments have started again after a long period of stagnation and uncertainty”. These are the words from the experts of Tecnocasa that confirm the figures of the Research Office of the real estate group, published on this page.

Aligned with the trend of the residential segment, also the touristic real estate has restarted: after all the conditions for the restart of the sales are the same as those who enabled the recovery in the purchases of houses. Prices at their lowest, a financial availability that has grown compared to the past few years, and, more importantly, a greater trust in real estate: these are the ingredients for the restart that concerns all the Italian North-West, from the beach of Liguria to the mountains and lakes of Piedmont and Valle d’Aosta. With some surprises. “In the west of Liguria even the French are buying again, which we didn’t see for 20 years – says Giovanni Griotti – the conditions after all are very convenient. It’s true that taxation has gotten higher but houses are taxed abroad too, and a house around Ventimiglia costs definitely less than the same type of house in the French Riviera”. The most “attached” customers of the Ligurian coast remain though the Italians, especially those from Piedmont and Lombardy. “We must say that the holiday house market has always remained solid, especially in the most popular destinations: these days, however, there are new opportunities and the requests are much more”. And in Liguria, following the nearly market saturation of the most desired destinations, from Alassio to Santa Margherita till Cinque Terre (where prices remain prohibitive to the most anyway), there is an increasing interest in the immediate countryside and in the lesser known small towns where prices are more affordable.

Also, the mountains of Piedmont are doing well, according to Gianni Pautasso, “we have registered a good flow, especially in the seasonal rentals and a clear restart of the purchases, not only in the most popular locations such as Ulzio, Bardonecchia or Sestriere but also in areas that were left behind before”. Pautasso highlights as, together with the vacation house, also the way Italians see them has changed:”Not everybody chooses the mountain to go skiing in the winter, as well as many don’t go for a beach house because they prefer cooler temperatures and quieter places”. To the point that there are countless cases of discovery, or rediscovery, of destinations on the hills, rarely visited where a detached small house with garden costs the same as an apartment in the more popular beach and mountain destinations, and there are more and more buyers choosing them. Also in the Alps and surrounding, however, the market registers an increasingly strong presence of foreign guests: “British people come in flocks for the ski, and the in valleys even in summer we see many Dutches, French and Germans: tourism has changed and it’s not unusual getting requests for houses in locations ignored before, like the Canavese area or the hills of the Turin province. An example? In Cantoira, north from Lanzo, a small house is sold at 30,000 euro, and there are people buying it”.

Valle D’Aosta follows a similar trend: if the “champions” like Courmayeur, Champoluc and Cervinia are still standing out with their considerable amount of tourists from outside – from all the North-West but not only -, the interest of the buyers for lesser known, and with more affordable prices, destinations grows, confirms Agostino Nicotera. Besides, for the moment, even though the seasons being a little “crazy” and the temperature consistently rising, the ski destinations are not experiencing any crisis in their business, quite the contrary.

In the overall, the picture emerging from the figures and considerations of the experts of Tecnocasa is positive for two main aspects: the appeal of the offer, which is in any case carefully evaluated in terms of quality of the property and of the surrounding area, and the investment decision, which is back after the years of uncertainty due to the recession.

Buyers tend to buy upfront, without applying for new loans, and carefully evaluating the offer, but at the same time aware that “ the times of buying at 100 and resell it for 130 after five years are over: families have understood that a holiday house is a long term investment which, considering the current situation, is more advisable anyway than the financial ones”, Griotti explains.

Impossible, also for the touristic segment, trying to foresee when the market will find its balance and the first signs of increase in value: from one side because there are specific elements, varying from destination to destination and depending on the trends and the dominant lifestyles, that strongly influence the dynamics of prices, more than in the residential segment; from another side because a part of the real estate residential assets might turn into touristic wherever the conditions are auspicious: in the future the granny’s small house might become, instead of a burden, a little treasure.

Ue-19: construction is rising again but in Italy record downturn

 

-4.1% in April, while in the Eurozone +0.3%

The construction industry in the Eurozone is rising again in  April (+0.3% in March), while it drops in Italy (-4.1%), the lowest figure of the 19 countries of the Eurozone. The news come from Eurostat. The trend is flat instead in the 28 European countries.  The production in March was -1.1% in the Eurozone and 0.6% in Italy.

Looking at the figures of the 28 European countries, the production increased in Sweden (+3.8%), France (+3.5%) and Czech Republic (+1.6%), while it decreased in Romania (-7.7%), Hungary (-2.6%), besides Italy. Compared to April 2016, the figures show an increase in the Eurozone of 3.2%, and of 2.7% in the 28 EU countries and a decrease of 4.6% in Italy, once again the lowest figure in the Eurozone also on a yearly basis.

Scali Fs, agreement signed: green, low-rent accommodations and Circle Line

 

Over 675 thousand Sq m of green areas, equal to 65% of the whole area, 97 million euro for investments in the Circle Line, at least 32% of the total volumetric capacity destined to non-residential functions and at least 30% for council estates and low-rent accommodations, as well as redistribution of the volumetric capacity towards bigger areas. These are the key ideas of the agreement signed on Thursday at the Farini station by the Milan City Council, the Region of Lombardy and Ferrovie Dello Stato Italiane (Italian Railways) with Rete Ferroviaria Italiana, FS Sistemi Urbani and Savills Investment Management Sgr (owner of part of the land included in the Farini station) for the redevelopment of the 7 decommissioned railway stations, that together occupy a surface of 1,250 Sq m, 200 thousand of which will maintain their original railway function. This is the biggest urban redevelopment plan concerning Milan in the next 20 years, one of the biggest territorial valorisation projects in Italy and Europe. The agreement addresses the requests emerged last November by the Municipal Committee as well as the petitions raised throughout the long process of public participation and debate which have seen the involvement of over 60 thousand people.

Green and public space

The agreement plans to destine at least 65% of the total surface of the area, equal to over 675 thousand Sq m, to green areas and public spaces. This is an increase of about 130 thousand Sq m compared the previous agreement hypothesis. Besides the 675 thousand Sq m, it will be implemented 200 thousand Sq m of eco-friendly railway connections along the railway tracks, including the Green Railways project on the southern belt of the city and the cycle and pedestrian lane along the platform in direction of Chiaravalle. All the stations will need to have at least 50% of green areas. Above all, it will be implemented a big park of an extension of 300 thousand Sq m at the Farini station, which will become in this way the third largest in the city, together with Montestella Park, after Lambro and Sempione, as well as a 90 thousand Sq m park in Porta Romana and a naturalistic oasis of 140 thousand Sq m (equal to 100% of the total surface of the station) in San Cristoforo.

Circle Line

The implementation of the Circle Line is a key element for the sustainable development of the metropolitan area. In the next decade, Ferrovie Dello Stato will invest about 1 billion euro in the railway system of Milan. Connected to the agreement are investments for 97 million euro for the construction and modernisation of the stations along the Circle Line. Besides the 50 million generated by the capital gain from the divestiture of the areas, in fact, 22 million will fund the new stations Tibaldi and Romana, 5 million will integrate the investments to improve the accessibility of the Greco-Pirelli station, 20 million will go to the new Dergano station (upon assessment of the feasibility), or in alternative to another intervention on the line. The 50 million, guaranteed by Ferrovie Dello Stato even in the case the capital gain would be lower than expected, will permit funding the feasibility analysis for the development of the northern belt of the Circle Line (which will also confirm the exact location of the new stations), building the new Stephenson station and implementing the necessary adjustments for the San Cristoforo, Greco-Pirelli and Romolo stations. The 50% of the capital gain that can be obtained, besides the already mentioned 50 million, will fund further interventions on the railway system of Milan.

Charges and extra charges

214 million euro will be invested in the urbanisation of the areas. Besides the 133 million euro of urbanisation charges that, according to the estimates, the operators will have to pay to the Administration, there are also extra charges equal to 81 million (80 million from Ferrovie Dello Stato and 1 million from Savills Investment Managment Sgr), parted in 46 million for the transformation of Farini, 30 million for Romana and 5 million for Genova, destined to the accessibility and reconnection works of the areas.

The seven train stations

The areas of the seven decommissioned train stations – Farini (618.733 Sq m), Greco (73.526 Sq m), Lambrate (70.187 Sq m), Porta Romana (216.614 Sq m), Rogoredo (21.132 Sq m), Porta Genova (89.137 Sq m) e San Cristoforo (158.276 Sq m) – are included in the properties transferred to Ferrovie Dello Stato (as per  the law n. 210 dated 17th May 1985), and they are part of the assets of which Ferrovie Dello Stato have full availability as per the civil rule regulating private property. In these areas are included both decommissioned areas and areas still functional for the railway service. The company  FS Sistemi Urbani, 100% subsidiary of Ferrovie Dello Stato Italiane, has the duty to promote the areas owned by the group that are not functional to the transportation activity throughout Italy. Once essential elements for the economic, social and infrastructural development of this city, today these areas represents discontinuity for its development, being in a state of degradation and abandonment. Starting from 2015, the Milan City Council, Ferrovie Dello Stato and the Region of Lombardy had started defining the objectives and the processes for the urban transformation of the old stations in order to improve the railway system of Milan. The regeneration of the stations will reconnect the urban empty spaces between the city centre and suburbs, creating new neighbourhoods with a good balance of functionality and quality of life, plus a diffused green infrastructure and a capillary and sustainable mobility system.

The Student Hotel: 90 million for the neighbourhood of San Lorenzo

The Student Hotel, a Dutch hotel model addressed not only to students but to any type of guests, has presented its project for a development in Rome.

The company, that has among its shareholders the American Fund Aermont and the Dutch pension fund Abp, will invest in the Rome Project 90 million and will work together with Cassa Depositi e Prestiti, owner of the land of the former San Lorenzo Custom house where the new hotel will be built. The facility will have almost 500 rooms, a covered surface of 13,500 Sq m, several shared areas and services and a big square facing the city.

Cdp will take care of the paperwork needed to start the construction works, the transfer of the facility and the land to the Dutch group will be in a later moment.

This one in the Capital is not the only investment of Tsh in Italy. In Florence, a facility in Lavagnini Boulevard should open this autumn, for an investment of about 40 million, and the company is working on a second project in the Belfiore area, for a cost of 28 million. In Bologna, the City Council gave the permission for the construction of a student hotel in the neighbourhood of Navile for a total investment of 45 million. Besides, the company is evaluating similar operations also for Milan, Turin, Padua and Venice.

Tsh invests 500 million in Italy

 

Presented the 90 billion project located in the San Lorenzo neighbourhood in Rome. The group is also interested in Milan and the South

The Student Hotel is ready to invest in Italy 500 million. Yesterday the group presented the fourth project which will be developed in Rome, in the historic neighbourhood of San Lorenzo. To operate in the Capital, the Dutch company decided to collaborate with the group Cassa Depositi e Prestiti. The land (22 thousand Sq m) on which the new hotel will be built belongs indeed to the latter, precisely to Cdp Immobiliare. The hotel, like all the others built by the group, will unite the informality of a hostel to the beauty of a cosy and functional hotel, being addressed not only to students but to all types of guests, creating meeting points. The agreements between Cdp and The Student Hotel are not only a simple property sale. Cassa will play an active role in the Rome project, at least the initial phase. It will take care, for instance, of the paperwork needed to get the authorization for the start of the construction works (the deadline is two years). Only after then there will be the actual transfer of the property and the land to the Dutch group. For what concerns The Student Hotel, which among its shareholders there are the American Fund Aermont (those of Perella Weinberg) and the Dutch pension fund Abp (one of the biggest in the world), the capital invested in the Rome project amounts 90 million in total. To the sum we must add the 40 million already spent in Bologna and the 170 million that will be invested in two facilities that the group founded and led by the Scottish Charlie MacGregor (a shareholder of Tsh) has decided to open in Florence: one will be in the Del Sonno palace, the other in the ex Fiat offices, in Belfiore Boulevard. There are also other initiatives regarding Italy in the program. “We are interested in Milan, where we have already spot an area that might have potential, but we are also attracted by the South”, says MacGregor to MF-Milano Finanza. The alliance with Cassa Depositi e Prestiti, an experiment for Rome, might be repeated also for other projects, says the manager. Not only because Cdp owns several properties in Italy that may interest the group, but also because the relationship between the two partners, at least indirectly, doesn’t limit only to Rome. The American Fund Aermont (a shareholder of The Student House), together with Cassa Depositi e Prestiti, is indeed a shareholder of the ex-factory Tabacchi in Florence, this one too object of a redevelopment plan to transform it into a luxury student accommodation.

Regarding the International expansion of the group led by MacGregor, the growth plan concerns more or less the whole continent: the goal is to build 41 facilities by 2021, and by then the planned investments in Italy should be completed.

Released the restoration works for the Traversi garage. It will be a luxury store

 

With the money paid the centre will get a swimming pool in Fatebenesorelle Street

After 15 years of abandonment, the ex-garage Traversi in Bagutta Street will be redeveloped. In the future, from now to 3 years, there will be shops and a swimming pool gifted to the Moscova area. Yesterday the City Council signed the agreement with the company owner of the propriety, Bnp Paribas Real Estate, to start the restoration without the demolition of the building, in exchange of the divestiture of the area, it will be built a covered swimming pool in Fatebenesorelle Street, besides the sports centre Play More. The ex-garage, a building built in the 30s in rationalist style by the architect Giacomo De Min, will become most likely a luxury centre. Those five thousand square metres distributed on nine floors and just a few steps away from the fashion district Quadrilatero, in fact, will be very attractive for big brands. While the swimming pool, a five million project, will have, besides two pools and the changing rooms, a gym, a cafeteria and a solarium. The redevelopment of Fatebenesorelle Street is also in the program, with the implementation of new sidewalks and parking spaces for cars and motorbikes. The company will pay to the City Council 845,000.76 euro and other 5.5 million in the eventuality the garage will become a big commercial space.

Why Unicredit is selling npls at dirt cheap prices, clearly explained (by Banca d’Italia)

When the 13th December 2016 Unicredit announced an agreement with Pimco and Fortress for the transfer of a portfolio of bad loans, everybody was wondering at which price the huge amount of credits (17.7 billion euro gross, then dropped at 17 billion) would be sold.

The transfer price hasn’t been finalized yet, but, based on the assumptions made on the 13 billion capital increase in program, they’ll probably be close to the 13% of those 17 billion, if not less (the market measures the transfer price of the non performing loans (npl) as a percentage of the gross nominal value).

These numbers made jumping more than one banker, so dirt cheap as they are, also in relation to the average collection rates registered in the last few years. At this prices, can the completion of this huge transfer called Progetto Fino be considered a success by the Ceo Jean-Pierre Mustier?

Not only the bankers, that 12.94% has shaken also the experts of Banca d’Italia. In January, in fact, an analysis by Banca d’Italia revealed that the average collection rate for the bad loans of the Italian banks in the decade 2006-2015 had been equal to 43% of the gross value. In the years 2014-15, the average collection rates dropped at 34.7%.

It’s true that “the collection rates differ a lot from bank to bank”, but 13% is very distant from the average values calculated by Banca d’Italia. How is it possible to explain this difference that seems to deny the figures published by the regulator only a few months ago?

By publishing a nice official explanation on Notes for Financial Stability and Surveillance. A rather unusual initiative, that of analyzing a single operation of a specific subject under surveillance, but it was necessary for the opportunity to give a clear signal to the confused market.

“The aim of this memo is to show the characteristics of the operation FINO, in order to understand if these characteristics can explain the difference between the value of the bad loans  transferred by Unicredit Group and the expected average collection rates”, reads the communication signed by three analysts of the Department for Banking Surveillance of Banca d’Italia, which consider the system’s average collection rate for the years 2014-2015, that is the 34.7%.

As usual, a good starting point is the comparison of the data, that required an adjustment assessed as 1.9 percentage point. Then the difference is explained by the “company” effect (the Fino operation includes only credits towards companies, that have lower collection rates, while the 34.7% of Banca d’Italia considers the collections towards companies and families), the “market sale” effect (the income coming from the transfer on the market is lower than the collections internally obtained), the “vintage” effect (the  loans included in the Fino are very dated and this implies lower collection rates), and by the “collateralisation” effect (the collection rates, and therefore the market prices, are lower for the credits without collaterals, as are most of the credits included in the operation).

Factors contributing to the difference between FINO and average collection rate

Average collection rate 34.7%
“Company” effect 1.3%
“Market sale” effect 12.4%
Data adjustment 1.9%
“Vintage” effect 2.0%
“Collateralisation” effect 13.0%
Remaining gap price 3.1%

 At this stage, there is a gap price of 3.1% left that hasn’t been explained yet. According to the analysts of Banca d’Italia, “ it is within the reasonable confidence interval of the estimate”, even though the structure of the operation and the dimensions of the Fino portfolio may have contributed “to the reduction of the selling price, even though it’s not possible to calculate the exact impact”.