(Visited 322 times, 1 visits today)
(Visited 322 times, 1 visits today)

International funds are investing in Florence historical buildings

25 October, La Nazione

It’s a huge business: prestigious apartments, luxury hotels, whole historical buildings being overhauled featuring even gyms and swimming pools. In the next couple of years, foreign investments in Florence will surpass one billion euro. Sovereign funds, American tycoons, wealthy Chinese from Taiwan, Germans and Indians: they all want to do business in Tuscany’s capital. In this way, long-abandoned old buildings will be given a new life.

Renovations are encouraged by the new urban plan which prohibits new construction. As the historical buildings are restricted by the Superintendence, Urban Planning City Councillor Giovanni Bettarini is very cautious about the projects. For instance, in Via Bufalini, DeA Capital Real Estate of Tom Barrak, one of America’s richest men, is going to invest millions of euro to turn the old Cassa di Risparmio offices, 18,800 Sq m, into luxury apartments for 70% of the total surface, while the remaining 25% will be dedicated to services and 5% to commercial activities. The City of Florence will earn 650 thousand euro from the project, which will be used to renovate Piazza Brunelleschi and the surrounding area. The Argentinian Alfredo Lowenstein is also looking to invest in Florence, although the agreement with the city administration hasn’t been reached yet. He loves Tuscany so much that he bought the whole Medici castle in Cafaggiolo, in Mugello. After having constituted Pontevecchio Spa, he will invest 160 million euro to transfer the old V. Veneto barrack in Costa San Giorgio into a seven-star hotel. Nicholas Fraser invested 50 million euro in the new Student Hotel in Viale Spartaco Lavagnini through the company Tsh Florence Propco Srl, the same company that will invest in another ultraluxury hotel in Viale Belfiore dedicated to international students.

Meanwhile, Beatrice Srl, linked to the company of the Chang family from Taiwan, will invest 40 million euro to renovate the real estate complex Portinari Salviati in Via del Corso, dating back to the 15th century and built by Michelozzo. 80% of the total surface (over 10 thousand Sq m) will be used to create apartments. In this case, the compensation costs will be used to renovate the Oblate façade and to rebuild Via Folco Portinari.

Another million will be invested in the theatre for visual arts in Oriuolo. An Indian banker, through the company Leeu Italy Srl, is aiming at the historical building Querce, near San Domenico, to turn to into a luxury hotel also in this case. But the negotiation is still on. The project concerning the old tobacco factory, owned by Manifattura Tabacchi Spa, is also pending. This is the largest bet for the city administration, concerning an investment for 200 million euro, to recover a part of the city through the American fund Aermont Capital.

Another big operation concerns the requalification plan of the former city theatres Maggio. The German Hines expressed its interest in the project, although there is nothing official yet. CDP Investimenti Msgr signed the recovery plan, but the agreement with the city administration hasn’t been reached yet. In the meanwhile, the company spent 34 million euro to buy the theatre, also, in this case, to be converted into a luxury property. The plan also includes renovation works concerning 15,500 Sq m of the total 21,000 Sq m.

Bottom line, the more the investments, the more money the city administration will earn. It would be easy, if Florence wasn’t one of the most famous cities in the world, attracting over ten million tourists every year. This is the business that actually interests international investors.

Source: La Nazione

Translator: Cristina Ambrosi