It was an amazing chat with Investors, Italian real estate and Banks leads. I genuinely do think that even though the majority of Investors are still looking at core assets in Milan, value added plays a good role in the primary cities, debt opportunities are on the right truck to blossom, but secondary cities like Florence, Venice and Bologna are the next steps toward a higher return .....

1. PIE 18 April, 2016
EXCLUSIVE Venice Antonella Mazzeo PIE Italy Property Breakfast Florence REAG
Rome yields Italy Milan Duff & Phelps
Core investors put
pressure on Italy’s A, B
city yields – REAG’s
Mazzeo
The increasing number of core investors active in Italy is
putting pressure on yields in prime and secondary cities,
says...
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2. he increasing number of core investors active in Italy is putting pressure on
yields in prime and secondary cities, says Antonella Mazzeo, Managing
Director at Duff & Phelps Real Estate Advisory Group and panelist at
tomorrow’s PIE Italy Property Breakfast in London.
In 1Q16, most investors on the Italian real estate market focused on trophy
and core assets in prime cities such as Milan and Rome, Mazzeo told PIE in a
pre-event statement. “That drove down prime real estate yield due to a
shortage of products,” she said. Offices and high street assets in Rome and
Milan have now reached a yield level of 3.5%. As a consequence, some
investors have started to buy on secondary markets such as Florence and
Venice, where opportunities are also becoming scarce. Yields in Florence
have fallen to 4%.
“Foreign investors are almost on the right track on rediscovering Italy,” said
Mazzeo. “At least they are looking at Italy in a different way!” The market
has been evolving from private equity buying core and core plus assets at
opportunistic prices to core investors buying trophy assets in the center of
the prime cities at market prices. “Only few investors have different
investment strategies based on asset valorisation and/or intensive asset
management, while taking the chance to form partnerships with banks and
debtors who own distressed assets in order to find a different path to
increase returns,” said Mazzeo. She identified non-performing loans sitting
on banks’ books as great opportunities: “around 40% of such loans are real
estate collateral.”
Mazzeo will be a panelist at the PIE Italy Property Breakfast on 19 April at
the Dentons office in London. For more information visit: www.pie-
mag.com/events. pie
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