Impresa Percassi to acquire Mangiavacchi construction division

23 December, Ansa

A binding agreement has been entered for the acquisition by Impresa Percassi of the Mangiavacchi construction business unit to create a new company operating in the Italian private construction sector.

The new company will have an aggregated turnover of over 180 million euro in 2020 and a project portfolio valued around 400 million including Palazzo del Fuoco and Milano City Village among others, as well as a track record of projects such as Bocconi Urban Campus, the new Siemens HQ in Milan, Palazzo Turati, the Expo village in Cascina Merlata, and the Symbiosis project.

Source: Ansa

Translator: Cristina Ambrosi

 

Cerberus rejected the Saco bail proposal. The construction company ends up in liquidation

03 September, Bebeez

The fund Cerberus, the main creditor of Saco, rejected the bail proposal of the construction company. Cerberus bought the Saco debts included in the NPL portfolio Rossini from Banca Marche for a gross value of 760 million euro. The debts of Saco towards the bank amounted to 135 million. The rejection by Cerberus will result in the liquidation of the company’s assets, assessed around 130 million and including real estate assets and developable areas.

Source: Bebeez

Translator: Cristina Ambrosi

Puglia: contruction grew by 4.4% in 2018

21 August, Rete Gargano

The construction sector reported a 4.4% growth in Puglia in 2018. Such a result has also been possible thanks to the regional law named Piano Casa, which has been recently extended till 2020. The law favours the urban and real estate revitalization of cities as well as their cultural renewal, the economic growth and social inclusion.

Source: Rete Gargano

Translator: Cristina Ambrosi

40% of construction companies closed in the last ten years

13 March, Corriere della Sera

Despite being a vital sector for the economy, in Rome, construction companies went from 11,114 to 6,813 in the previous ten years, the number of workers reduced from 63 thousand to 30 thousand, and the total average salaries decreased from 502 million to 285 million (-43%). The figures are reported by the Rome builders association Acer. According to its president, Nicolò Rebecchini, “massive investments and tax reliefs are not necessary. All it takes is realising all those projects that are currently stuck with the public authorities due to red tape”.

Source: Corriere della Sera

Translator: Cristina Ambrosi

 

Real estate is still in a delicate phase

18 October, Wall Street Italia

Many players are questioning the situation of the Italian real estate. To give an objective opinion, here is a synthetic analysis based on the fourth edition of the notary deeds yearly report.

The report dated July 2018, referring to the data gathered up to 31st December 2017, is the first yearly comparative report, making a comparison with the 2016 figures. The report includes very interesting data and, for some aspects, even surprising.

Transactions

The data refer to real estate transactions regardless whether the quota referred in the notary deeds is equal or higher than 50% of the ownership. 862,939 transactions were recorded in 2017, having increased by 6.79% from 2016.

Life estates were over one thousand (1,092 to be precise). Transactions for land were 156,140, 72.87% of which concerned agricultural lands.

Over half of the transactions happened in the north (55.39%). Lombardy is the region with the highest number of transacted properties 9171,382). Milan, whose market is thriving, is undoubtedly the primary driver for the result at macro-regional level.

On the other hand, Abruzzo is the only Italian region reporting a negative result. Here, transactions decreased by -4.56% compared to the previous year. The natural disasters of the past years certainly influenced such performance.

Age brackets

The age bracket reporting the highest number of transactions is the one comprised between 18 and 35 years, which represents the majority of buyers, while the biggest quota of sellers is constituted by people aged between 56 and 65 years.

The only exception is land, which is bought by people aged between 46 and 55 years.

The figures are not surprising, especially if we consider the tax relief request to buy the main dwelling. Of 553.654 transactions completed in 2017, for 310,880 was requested the tax relief. 39.66% of the buyers of the age bracket between 18 and 35 years requested the tax relief to buy the main dwelling.

Mortgages

There was no significant variation from 2016. In 2017, mortgages for amounts up to 150,00 0 euro were the biggest quota. The average values of transactions and the stricter requirements of banks to grant a mortgage (based on the applicant’s income) influenced such result.

People aged between 18-35 and 36-45 years represent the majority of people applying for a mortgage.

Therefore, it’s possible to see the connection between age and the number of transactions funded by mortgage for the purchase of the main dwelling.

Moreover, we must consider another factor: the older the age, the more the restriction to access a mortgage will be. The restrictions may be, for instance, the age limit to obtain a mortgage, the request of a collateral, a death risk insurance policy, etc.

Transaction values

We assisted at a general decrease on the average values of transactions, which have gone from 148,000 to 126,000 euro. This data is not surprising, as many operators talk about a consolidation of the price trend.

The analysts forecast that prices will further decrease in 2018, except for prime locations and the main cities (Milan, Turin, Genoa, Venice and Bologna), where the dynamic market makes possible to reduce the average time to close a deal and to rent profitably, as well as to sell quickly if necessary.

Ownership transfers for developable land valued between 700,000 and 1,000,000 euro increased. This might be the sign of a renewed trust in the construction sector, although this is not a certainty.

Donations

Property donations decreased (-2.25%). They concentrate mainly in the south, and they mostly concern people aged between 18 and 55 years. Donations for life estate are still common and concerning people aged over fifty years.

Companies

Finally, as we know, SMEs are the real driver of the Italian economy. Real estate companies are still at a standstill. Excluding residential properties, the countertrend registered in 2017 concerning instrumental properties is worrying, having reported a fall in the number of transactions equal to -1.44%, while the figure for instrumental buildings sold by companies plummeted by 15.21% from 2016.

The aftermath of the recession and the lack of trust of entrepreneurs in the system is not an incentive to make new long-term investments.

In conclusion, the figures show a general recovery of the property market, considering the variable factors such as the economic, political and social context, although with some exceptions.

2018 confirms that the industry is going through a very delicate phase where the average times to sell a property and the average discounts applied show a very uncertain picture.

Source: Wall Street Italia

Translator: Cristina Ambrosi

Construction is back on its feet

27 January, Monitor Immobiliare

There are only weak sings for the moment, but they’re nonetheless a turning point. Istat reports that in the first part of 2017 the construction permits grew by 7.8% on a yearly basis, the sign that in Italy construction has restarted. The number of new houses went from 9.5% in the first part of 2017 to 13.6% in the second part of the year.

According to the most recent data, in November the seasonally adjusted index for new construction has registered an increase of 0.4% compared to the previous month. The cost indexes of the sector have increased by 0.1% for residential properties and by 0.2% for the roads without galleries while it has increased by 0.1% for the roads with galleries. If we look at the average for the September-November period, the seasonally adjusted index for new construction has increased by 0.3% compared to the previous quarter.

In conclusion, the picture emerging from these numbers is positive. We’ve been assisting for the last three years at a recovery of transactions (even though we’re well below the pre-crisis levels) and, for what concerns prices, there are signs of stabilization with an outlook of growth for the next months. Now, the long-awaited recovery of construction, the missing piece for a sector that had to deal with a recession lasted over ten years, having been hit by the economic crisis as well as by heavy taxation.

Source: Monitor Immobiliare

Translator: Cristina Ambrosi

Progetto Manifattura doubling the spaces

27 January, Milano Finanza

Trentino Sviluppo and the company awarded with the project Colombo Costruzioni from Lecco have recently signed a work contract for the implementation of Ambito B included in Progetto Manifattura. The project is valued 38.6 million euro. Colombo Costruzioni will have 100 days to prepare the executive plan. After that, in May, the construction site will open, for a total surface of 5 hectares. The work for 25,600 Sq m of new buildings will be completed by 2020 and it will make possible to double the production surface currently available, accommodating up to 100 companies for a total of 1,200 workers. The project has a strategical value for the province as well as for Italy since the doubled space will favour the creation of start-ups.

Source: Milano Finanza

Translator: Cristina Ambrosi

Merate, luxury houses designed by Botta. Berlusconi takes over the decommissioned construction site

24 December, Corriere della Sera

Luxury interiors, wide spaces and the green of Brianza. This is how you imagine it, looking at the project and thinking about who might afford a house like that. The sure thing is that this is a 10 million euro business. Silvio Berlusconi has decided to invest in Merate, in the area of Cascina Verdù. Together with the architect Ivo Redaelli, he has the started the company Brianza Due that will soon complete the 12 villas left unfinished in Via Allende, whose constructions site has been stuck since the bankruptcy of the construction company.

The Swiss architect Mario Botta has designed the villas, planning a residential complex of 24 luxury houses. Twelve have been already sold, the other twelve are to be finished. The ex-prime minister showed interest in the houses already in February: a quick round of Piazza Prinetti and then the inspection of the area to visit the construction site. Now, the operation seems to have been launched: the society whose majority is owned by Berlusconi aims at completing the houses, of 400 Sq m each, and put them for sale within a year. The first two, one built in classical style and the other in modern style, will be ready in six months. The prices for these actual vertical lofts are likely to be over one million euro. “We’re very happy, the sight of those bare structures in such a beautiful place was so sad. We’re sure that Berlusconi will be able to operate also in respect of the environment”, explains the Mayor of Merate, Andrea Massironi.

In the meanwhile, it looks like Berlusconi has based himself in Brianza, in the area around Lecco. Among the recent purchases, there is Villa Giambelli in Rogoredo di Castelnovo, a few kilometres from Arcore. The house has seven bedrooms, eight bathrooms, a 15,000 Sq m English garden, and it has been completely renovated in two years of works, becoming his refuge.

Source: Corriere della Sera

Translator: Cristina Ambrosi

Versine, Brescia. The construction site for the 100 suites is starting

06 December, Brescia Oggi

Even though the first stone will be set in January, the new constructions site was inaugurated on 10th December in presence of the Mayor for the building of the new 5-star resort “Il Giardino”, in Versine di Salò, a few metres from the ministry of Visitazione, with a fantastic view on the gulf.

The works are assigned to the Bergamo-based company Percassi (the brothers of Antonio Percassi, president of Atalanta FC), the project is designed by the architects Ermes Barba and Mauro Salvadori for a duration of 18-20 months.

The investment for 25 million concerns the construction of 97 suites, each of 53 Sq m, with a spacious wellness area of about 1500 Sq m, a gourmet food offer and conference rooms.

The resort will have a gross surface of 7 thousand Sq m, plus other 8 thousand Sqm (partly underground) for the hall, the kitchens, the lifts, the technical spaces and the garage. It will be approximately 20 metres high, part of which will be underground. The property’s surface is of 18,273 Sq m in total and it was previously owned by the Dolcini family.

The project is by Travel Charme, headquartered in Zurich, established by the group Schmidt from Essen and Duisburg, that has already implemented 9 similar facilities in Germany and Austria. The target will be mostly German and British, aged over 55-60 years.

The goal is to stay open all year round, hire 80-90 employees and use locally sourced produce.

The operation was postponed a few times, for two reasons: due to the negotiations around the acquisition of the group, now under the Munich-based Hirmer Immobiliare, and due to the restrictions regarding the ant seismic regulation of the Region of Lombardy. The companies have sent a bank transfer to the Municipality for 1.5 million euro, covering the urbanisation costs assessed in the agreement. The construction permit was then withdrawn and now the works can finally start. In January there will be a public assembly to present the project.

The operation follows the latest trend of urban planning in the area. The time of apartment buildings and townhouses is over, now the investments are all in luxury: millionaire villas, 5-star resorts. The only downside is that such a market calls for beautiful locations and landscapes, impacting the last pristine corners of Lake Garda.

Source: Brescia Oggi

Translator: Cristina Ambrosi

Three chasing the land of Generali in Milan

05 December, Milano Finanza

The property market in Milan is recovering really well. One of the most recent deals currently under negotiation is the one concerning the Generali property near Via Cenisio. The insurance company has started a couple of months ago a competitive auction for the purchase of the land and we’re now almost at the end of the contest. More in detail, according to rumours, there are three specialised funds left competing: Cerberus (particularly active in Italy as well as in the purchase of NPLs), Oaktree and Alpine Funds. The competition is in its final rush and it’s likely that it will conclude by the end of the year. The interest of the foreign investors is focused on the development potential of a semi-central area of the city, with the implementation of 200 apartments.

The whole requalification project is worth 100 million between the purchase of the land and property development. The deal is the phase of definition and it reflects a period for real estate that sees Italian and international investors implementing new residential projects in central areas of Milan. The French Nexity (with a turnover of 3 billion) has completed its construction site Porta Volta near the cemetery Monumentale. Varde, after having bought the hotel chain Boscolo, is now working together with Beni Stabili Siiq at the construction site in Via Montello, also located in Porta Volta: the project is worth 36 million. Then, always Cerberus has launched the works for another real estate project in Via Carducci. Finally, the Italian AbitareIn, AIM-listed, is continuing the construction works for the requalification of a residential property in the neighbourhood of Maggiolina.

Source: Milano Finanza

Translator: Cristina Ambrosi