Italian real estate investment up 54 per cent
Italian real estate investment across offices, retail and industrial grew by 54 per cent in the first half of 2013 when compared to the same period last year, according to data published by Cushman & Wakefield.
In the first six months of this year, EUR760m worth of transactions took place in the country compared to EUR495m in H1 2012. Specifically, investment in offices dominated H1 2013 volumes: 13 single asset office transactions totalled EUR430m, 57 per cent of the overall H1 figure.
Milan remains the most appealing Italian city for investors in offices and saw six H1 2013 transactions amounting to EUR235m (this excludes the Qatar-Hines Porta Nuova joint venture). Rome is the next most active market for office investment and witnessed four transactions totalling EUR130m in the first half of 2013.
Italy’s industrial real estate market saw investment activity reach EUR160m in H1 2013 – a positive sign when compared to H1 2012 where no transactions were registered.
Despite a relatively quiet start to the year for retail in Italy which saw five transactions worth EUR170m take place, making up just 22 per cent of total investment volumes, Cushman & Wakefield is confident total retail volumes will exceed overall office investment by the end of the year. The recent sale of Market Central Da Vinci Rome – the largest retail park in Italy – by AIG/Lincoln, advised by Cushman & Wakefield, to GWM for EUR130m represents the first stage of this increased activity.
Stephen Screene, Cushman & Wakefield’s head of capital markets in Italy, says: “Good quality retail investments have proven to be resilient in the downturn and as a company we are assisting an increasing number of new international investors and players which are now actively negotiating significant transactions in Italy.”