Month: February 2019

Property transactions decreased in the third quarter

21 February,  Milano Finanza

The data disclosed by Istat on the national real estate market reported mixed results. In the third quarter of 2018, the notary deeds and other deeds concerning property transactions were 175,102, indicating a 0.8% reduction from the previous quarter (-0.2% for residential properties, -10.9% for commercial properties). On a yearly basis, however, the real estate sales had increased in total by 1.6%. The growth mainly concerned the residential segment (+3.9%), while the commercial segment reported a 27.1% decrease.

As Istat explains, in the third quarter of 2018 the trend of the seasonally adjusted index for sales registered a slight decrease, after having expanded for six quarters in a row. Central Italy is the only exception, as in the area the positive trend continues. The seasonally adjusted index for mortgages, loans and other obligations related to mortgage loans continued growing, reaching the same values as reported in 2010 in the centre of the country.

The residential market registered a positive trend in the Centre (+0.9%), the North-East (+0.8%) and the Islands (+0.6%); while the trend was negative in the North-West (-1.2%) and the South (-1.1%). For what concerns the commercial segment, the North-West and the North-East sharply reduced (respectively -21.8% and -11.6%), the decrease was more moderate in the Islands (-6.1%), the South (-3.4%), while the trend was positive in the Centre (+2.3%).

In comparison with the third quarter of 2017, the growth of the residential segment in the period between July and September concerned all the macro-regions: the North-East (+7.3%), the Islands (+5.0%), the Centre (+4.7%), the North-West (+2.1%), the South (+1.9%) for towns of all dimensions (metropolitan cities +3.3%, small towns +4.5%). Similarly, the negative trend of commercial properties concerned all the regions and towns of all dimensions: the North-East (-41.1%), the North-West (-26.6%), the Centre (-22.1%), the Islands (-17.1%), the South (-13.7%), metropolitan cities (-21.5%) and small towns (-30.5%).

94.4% of the deals concerned transfers of ownership of residential and auxiliary properties (165,379), 51.1% regarded commercial properties (8,946) and 0.4% special use properties and timeshares (777). The notary deeds concerning mortgages, loans and other obligations related to mortgage loans (98,209) grew by 1.5% from the previous quarter and by 7.0% yearly. The growth of the notary deeds was homogeneous throughout the country.

Source: Milano Finanza

Translator: Cristina Ambrosi

 

Japanese to invest in Rogoredo, Milan. A hotel in place of an eyesore

19 February, Corriere della Sera

The old structure of the building has been demolished. The restoration of the land is expected in the upcoming days. An eyesore which has been left abandoned for decades will be replaced by a low-cost hotel chain. The renaissance of Rogoredo will be possible thanks to the Japanese. The building dating back in the Fifties at number 101 in Via Boncompagni and left vacant for three decades will be the first investment in Italy of the Japanese multinational Toyoko-Inn. This is the unmistakable proof that international investors are betting on the relaunch of the neighbourhood.

This is a bold move. Milan Toyoko-Inn will have ten floors and will be 36 metres high. The hotel will cover a surface of 8 thousand Sq m for a total of 490 rooms, making it one of the biggest hotels in the city. The minimalist style and the light colours are a trademark of the Japanese chain, and the hotel in Via Boncompagni won’t be an exception. Low-cost tourism will focus on Rogoredo. The suburban area is well connected through the city bypass, the motorway, and high-speed train station and the metro station. Santa Giulia is nearby, just like a small park where drug addicts usually gather.

“A building of this sort is the best way to make the neighbourhood safer”, said the president of the territory commission for the 4th Municipality, Massimiliano Conte. All the political parties have welcomed the arrival of the Japanese hotel.

“We’re delighted with the project. We believe it will have a positive impact on the territory”, said the local president Paolo Bossi. “We’re currently working in order to start the construction works as soon as possible. Not only the quality of life will improve, but there will also be more services on offer such the new public parking lot which will absorb the demand generated by the station”. City Councillor Pierfrancesco Maran is positive about the project; “Via Boncompagni used to have one of the most degraded buildings of Milan. Now that it’s gone, the area has a lot of potential. With the new territorial zoning plan punishing through restrictions on volumes those who don’t demolish or requalify abandoned buildings, we’re accelerating the renewal of some parts of the city”.

Source: Corriere della Sera

Translator: Cristina Ambrosi

A new Hilton close to Nuvola

20 February, Il Tempo

In Rome, in the Eur business district, a new Hilton hotel will open in 2020 by Nuvola (“cloud”) building. The building, named Lama (“blade”), featuring 439 rooms and a very particular architectonical structure, has gone to the hospitality multinational which already owns in Rome the Fiumicino Hotel and the Garden Inn Rome Airport. Eur Spa sold the hotel to Icarus for 50 million euro.

Hence, a story that lasted two years has come to an end. It has been the conclusion of a competition over a hotel destined to represent a strategic location due to the events and conferences hosted in Nuvola owned by Eur Spa. It’s not by chance that there is finally a date for the opening of the Convention Bureau, the bureau working on facilitating conferences throughout the Capital. The Rome conference sector needs new hotel facilities in order to accommodate all the participants.

According to Emea Hilton Vice President Patrick Fitzgibbon, “the arrival of Hilton Rome Euro – La Lama will further improve the offer for events and conferences in the city. The unique design of the hotel and the service level for which the brand is known to make of it the first conference hotel in the country”.

At the ground floor, there will be a restaurant, and a lobby bar open all day, while the restaurant on the 15th floor has the potential to become the best restaurant in the area. The hotel will feature an executive room, a business centre and a fitness centre. In conclusion, it will have everything to grant to conference participants coming from all over the word their best stay.

Icarus Spa president Filippo Rebecchini is happy with the outcome: “This year is the 20th anniversary of our partnership with Hilton. Since the opening of our first hotel, the Hilton Rome Airport in 1999, we’ve created together some of the best hotels in Rome. The Hilton Rome Euro – La Lama is the next chapter of our story. It will offer our hospitality values to our most loyal customers”. In this way, Eur has grown its offer.

Unfortunately, there is no news concerning the Aquarium. Do the complicated situation of the owner company, and the opening will have still to wait until further notice.

Conference tourism has grown a lot, and the efforts have started giving their results. 2018 closed with 120 members and partners adhering to the Convention Bureau and 207 requests for estimate coming from all over the world. Such requests undoubtedly show some interest in the destination as the possible setting for events. Many of the requested had translated into events, conferences and presentations taking place in Rome and Lazio over the course of 2019 and 2020, as well as in the following years.

The number of participants is not homogeneous. 78% of the request for work meetings consisted in less than 500 people, 14% were for conferences with over 3,000 people, 46% between 1,000 and 3,000 participants, ad 28% between 500 and 1,000 people. Finally, let’s not forget that a person travelling for business has expenses ten times higher than tourists.

Source: Il Tempo

Translator: Cristina Ambrosi

Sga and Credito Fondiario competing for Carige NPLs

19 February, La Repubblica

Countdown for the Carige operation concerning a significant portion of its bad loans. The competitive system set up by the three receivers Fabio Innocenzi, Raffaele Lener and Pietro Modiano seems to have given the expected results. There are allegedly two candidates: Sga, the company owned by the Ministry of Finance operating in credit collection and management, and Credito Fondiario. This latter acquired in 2018 from Carige part of the bank’s NPLs, about fifty employees and the NPL management platform. The disposal of bad loans for an amount of over one billion as planned by the receivers will be officially presented on 27th February.

In order to proceed with a possible merger, Carige intends strengthening its assets, and the issuance of two bonds with State guarantee is going in this direction, as well as getting rid of some of its bad loans. The plan will include a report on 2018. Since the bank is currently under temporary receivership, it’s not required to present a financial statement. The accounts are in red concerning the extraordinary reserves: the penal reserves for insurance division Amissima and the provisions for the transfer of Creditis to Chenavari.

Meanwhile, the Board of Directors has gathered to resolve on the NPLs. On the agenda, there is also the offer from Sga concerning the acquisition of part of Carige bad loans. The terms to submit the offers is set for next Friday. Credito Fondiario is among the candidates. Sga hasn’t made any statement in this regard.

Source: La Repubblica

Translator: Cristina Ambrosi

Portfofino villa sold to a Chinese buyer for 35 million. The number of luxury houses sold to foreigners has increased

18 February, Il Sole 24 Ore

Villa Buonaccordo di Portofino has been sold to a Chinese investor for a record price between 30 and 35 million euro. The location overlooking the Gulf of Tigullio and the yellow colour make the villa easily recognisable in many pictures of the Liguria village.

The portal Lionard had managed the deal. The advertisements on the website are translated into 20 languages. Many international sites are specialised in luxury properties such as Christie’s international Re, Sotheby’s International Realty and Knight Frank, all the offering prime villas. Even though many negotiations are confidential, the fact of being advertised on this sort of platforms, combined with the discretion of the brokers, shows that most of the buyers are foreigners. Long gone are the times when properties were being sold among Italians without any of the non-experts of the field knowing about it.

In the case of Villa Buonaccordo – perhaps, better known as Villa Pagani since it was the property of the family of the artist Herbert Pagani -, what is surprising is that the buyer is a Chinese, while most of the negotiations are being held with Americans, who are back again on the market. An example is the purchase of Villa Bibbiani not far from Florence, last year for approximately 20 million.

The protagonists of the market remain the Russians though, who have bought mainly on the coasts and in Tuscany countryside, partly replacing British clients. Another villa in Portofino, Villa Altachiara, which used to belong to countess Francesca Vacca Agusta, was bought on auction in 2015 by a Russian for 25 million. In any case, the sellers are Italian, while rarely foreigners “regret” their purchases.

The flat tax on 100 million encourages luxury purchases by wealthy foreigners who are moving their residence to Italy. Foreigners are not interested only in luxury assets. According to the data recently published by Gate-Away.com, a portal specialising in international real estate transactions, over one 1.5 million foreigners looked for properties in Italy in 2018, 8.4% more than the previous year, for an average property value of 350 thousand euro.

Villa Buonaccordo develops on five levels covering a surface of 850 Sq m and featuring two swimming pools: one inside with a jacuzzi and a heated pool outside surrounded by the garden. The advertisement on Lionard describes the property as “the perfect combination between elegance and refined design, the result of a meticulous renovation work on the original structure dating 1922”.

The buyer is Zhang Liang Johnson, leader of Kinetic Mines and Energy Limited, a company operating in the coal supply chain, and of Top Dynamic International, a holding mainly active in the semiconductor sector for electronics.

Source: Il Sole 24 Ore

Translator: Cristina Ambrosi

A hotel and a commercial district in the former Porta Susa station in Turin

20 February, Il Giornale

The disused station of Porta Susa will become a hotel catering to millennials. It was announced by Ferrovie dello Stato following the completion of the sale for 6.5 million euro to the real estate company Vastint Hospitality Italy. The company is part of Vastint Hospitality Holding BV. It acquired the asset for one million and 743 thousand euro, also adjudicating the mezzanine option of the City of Turin. The objective is to restructure the asset and implement a touristic district with hotels, shops and restaurants. This is an excellent property for an area which had been neglected. Vastint Hospitality is currently developing a portfolio including at least 50 hotels throughout Europe by the acquisition of assets in Germany, UK, Netherland, France, Belgium and Austria. For what concerns Italy, this is the third investment in Italy after those in Genoa and Verona.

Source: Il Giornale

Translator: Cristina Ambrosi

Bought on auction Palazzo della Fonte in Fiuggi

19 February, Il Corriere della Provincia

Grand Hotel Palazzo della Fonte in Fiuggi was acquired on auction by Forte Village. The buyer is a primary luxury hospitality groups in Italy. The company obtained the property for 16.5 million euro.

The staff of over one hundred people will keep their jobs.

The first reactions

Senator Massimo Ruspandini commented: “Finally good news for our territory which brings back the hope among the staff of the hotel. This might be, perhaps, the first step for the relaunch of tourism in Fiuggi and in the whole region of Ciociaria”.

Fiuggi Mayor Alioska Baccarini rejoiced at the announcement. His predecessor Fabrizio Martini commented on his Facebook profile: “Congratulations for the sale of Palazzo della Fonte, a symbol of Italian tourism. Good luck to the new owners”.

Source: Il Corriere della Provincia

Translator: Cristina Ambrosi

How Intesa Sanpaolo will do business with Intrum

04 December, Start Mag

After having obtained the green light, Intesa Sanpaolo and Intrum have entered the agreement for a strategic partnership concerning bad loans. The deal was signed and announced last 17th April.

The numbers of the Intesa Sanpaolo-Intrum agreement

The agreement implies the construction of a servicing platform 51% held by Intrum and 49% by Intesa Sanpaolo plus the transfer and securitisation of an Intesa NPL portfolio.

The capital gain stated by Intesa Sanpaolo

Once completed, the operation will result in a capital gain of about 400 million euro after taxes in the consolidated profit and loss statement of Intesa Sanpaolo Group for the third quarter of 2018.

The comment of Intesa Ceo Carlo Messina

“Today, we’ve made a crucial step towards the fulfilment of the 2018-2021 business plan, implying the reduction by approximately 11 billion euro – including adjustments – of the NPL stock, without charges for our shareholders”, stated Intesa Sanpaolo Ceo Carlo Messina commenting the operation with Intrum.

The objectives of the operation for Intesa Sanpaolo

He added: “The operation made possible the achievement of half of the target set in the business plan up to the end of 2021. The agreement is consistent with our de-risking strategy, which our group has been pursuing since 2015, especially through Capital Light Bank headed by Giovanni Gilli. Such a strategy has allowed us to reduce the NPL stock for a total of 26 billion euro in three years with no costs for the shareholders. We believe Intrum is the best partner to create together a company which aims at becoming a market leader. We’re sure the company will provide excellent results, thanks to the use of the most advanced NPL management technologies”.

Intrum’s plans for Italy

The Swedish group is increasingly focused on Italy. The servicing company might acquire new management platforms, although this is not its priority, as the company is currently focused on acquiring portfolios. This is what Ceo Mikael Ericson said last September during the NPL conference organised by Banca Ifis. Ericson reminded how the partnership with Intesa Sanpaolo “has been a large transaction for us, and we have now to digest it”. When asked about the new opportunities, he replied: “We’re here to stay. We’ll certainly evaluate new investments. We want to grow in the Italian market. The platform with Intesa is solid and competitive. What matters now is attracting new servicing opportunities and helping clients by acquiring portfolios. Platform acquisition is not our priority, but if that would be necessary to acquire a portfolio, we’ll certainly evaluate the possibility”.

The article by Start Magazine following the announcement by Intesa Sanpaolo

The offer concerns two separate operations. The first one involves the acquisition of the Intesa servicing platform, 51% of which will go to Intrum for 500 million euro. The second is related to NPLs for a total amount of 10.8 billion gross, which will be securitised for a value of 3.1 billion euro, namely 28.7% of their gross value. The value is consistent with the figures reported in the accounts. The operation will generate a capital gain of about 400 million euro after taxes in the consolidated statements of Intesa Sanpaolo.

What will happen

The operation is included in a broader offer from Intrum Justitia concerning a strategic partnership with Intesa Sanpaolo on bad loans. The integration of the platform of the Italian bank and Intrum might lead to the creation of a leading servicer in the Italian NPL market.

What Repubblica commented

As Repubblica wrote: “Having postponed the sale of NPLs and having made Intrum and the Chinese Cefc competing allowed Intesa to obtain 28.7% of the nominal price on average, which is well above the average”. Although the market is improving, “the result is way above the 18% of the four good banks which got rid of NPLs for 10 billion and above the 13% that Unicredit got from the sale of NPLs for 17 billion in 2017”.

How the operation will be structured

The senior tranche, corresponding to 60% of the portfolio, will be funded by a pool of banks composed of Banca Imi, Mediobanca and Goldman Sachs as arrangers, Credit Suisse, HSBC and Imi as lenders. It’s likely that Gacs will be requested for this tranche.

The second tranche

The remaining 40% is composed by the junior and mezzanine tranches. 51% of the tranches will be subscribed by a special purpose vehicle owned by Intrum and other co-investors, which will act as the sole investor for governance reasons. Intesa Sanpaolo will subscribe the remaining 49%. According to some sources. Intrum co-investor might be CarVal Investors which will provide 20% of the necessary capital. As Il Sole 24 Ore wrote, Intrum is meant to pay 156 million by the end of April, while the remainder will be paid in November. This scheme will make possible the disposal of impaired loans by the end of the year.

The offer in detail

The Bank’s Board of Directors will assess the offer. The proposal might provide a capital gain of about 400 million euro after taxes in the consolidated accounts of the group. The servicing platform, in fact, is valued 500 million euro, while the loans to securitise are approximately 3.1 billion euro.

The numbers of the operation

Intesa Sanpaolo has already a good credit quality, with the NPLs on total credits ratio equal to 5.5% net of adjustments, while it was 8.2% at the end of 2016. The bank achieved with two years in advance its objective of bringing the ratio below 6% by the end of 2019. In 2017, Intesa reduced its gross NPL stock by 13 billion euro. Concerning the terms of the agreement to be discussed by the Board, the new company created by the merger of Intesa and Intrum will be composed of servicing by 40 billion euro, with 51% of the platform held by Intrum and 49% by Intesa Sanpaolo.

The terms of the operation

The servicing contract for Intesa’s bad loans at market conditions will have a duration of ten years. The process will concern about 1,000 employees, 600 of which are Intesa Sanpaolo employees. The staff will receive professional training. The closing for the transfer of the large NPL portfolio is set for November 2018. The transaction will have the following structure: a pool of primary banks will subscribe a senior tranche corresponding to 60% of the price of the portfolio, the junior and mezzanine tranches equal to the remaining 40% will be subscribed for 51% by a special purpose vehicle (owned by Intrum and one or more co-investors acting as a sole investor for governance reasons) and by Intesa for the remaining 49%.

Source: Start Mag

Translator: Cristina Ambrosi

Real estate crowdfunding: “ethical profits” from auctioned houses

15 February, Il Sole 24 Ore

A new real estate crowdfunding platform is ready to start. The name is “Rendimento etico” (“ethical profits”) promoted by Andrea Maurizio Gilardoni, a real estate investor and trainer. Just like the already known Housers and the newly-born Trusters, the platform showcases lending offers, consisting in loans payable after the maturity plus interests (which are not guaranteed, as it happens with this kind of initiatives) without the participation of subscribers of the capital (which characterises equity crowdfunding).

“We’ve chosen the adjective ethical because the operations will target families in difficulties which are already struggling with banks. We want to intervene before properties are out for auction. We buy them at very convenient prices directly from the owner. After a thorough renovation, we put them on the market. That’s how we make our profits. But we close the deal only if, in the meanwhile, we’ll have sorted out all the debts towards bank as well as towards any other possible creditor”.

Such a result is achievable as Rendimento Etico is supported by Credito Italia, a company of Gilardoni himself. The company provides “debt reset” services through a network of consultants throughout Italy, using tools such as the liquidation of assets and the purchase of debt securities from banks. “I’ve been carrying out investments of this type for years with the participation of the small community of investors that has formed with the time. Crowdfunding offers a new channel to get funds while it gathers people”, adds Gilardoni.

Rendimento Etico is about to publish its first projects in the next few days. Meanwhile, the company has already collected 1,400 subscriptions from potential investors. Lemonway has been appointed for the management of the transactions.

From a corporate point of view, Rendimento Etico is 100% owned by Credito Italia srl, a subsidiary of International Marketing Consulting D.o.o, a Bosnian company of Gilardoni’s partner Lucijana Lozancic.

Gilardoni is a real estate trainer who, thanks to an intense activity on the internet, organises seminaries all over Italy teaching “how to make money” in the real estate market and how to become an entrepreneur.

Source: Il Sole 24 Ore

Translator: Cristina Ambrosi

NPLs: 398 transactions in 2018 in Italy for 106.4 billion

12 February, Milano Finanza

Last year, the Italian NPL market registered transactions for 106.4 billion euro. The figures are taken from the report by the NPL national observatory of Credit Village which was published by Reuters. There were 398 operations, 155 more than 2017.

Deals involving a State guarantee (Gacs) were 13, for a total gross book value of 44.3 billion. Special purpose vehicles issued notes for various classes for a total of 10.4 billion with a purchasing price between 18% and 34%.

For what concerns the type of the underlying credits, 82.7% of the total transactions consisted of mixed portfolios, 6.9% concerned secured holdings, and 10.4% was composed of unsecured loans. The single name operations were 190.

2018 saw an additional focus on servicing in terms of asset under management. The 28 transactions for a gross book value over 500 million, corresponding to a total value of 93.4 billion, were assigned to only ten servicers. The selection on the servicers appointed for the operations with Gacs, amounting to more than 44 billion, was even stricter: only Credito Fondiario, Cerved, Prelios and doBank/Italfondiario dealt with such transactions.

Nearly one-third of the operations carried out in 2018, corresponding to 113 transactions, was completed on the secondary market, although the values are still rather low (6.2 billion).  Credit Village, like the rest of the operators, believes in an increase of transactions on the secondary market in 2019.

Source: Milano Finanza

Translator: Cristina Ambrosi