Italian real estate capital market in Q3 2017

1. Prelios S.p.A.
Via Piero e Alberto Pirelli, 27 - 20126 Milano
+39 02 62814089 - www.prelios.com
Head of Group Market Research:
Giancarlo Cucini
giancarlo.cucini@prelios.com
PRELIOS | Italy investment market Q3 2017
Moresignsofgrowthintherealestatemarket
Evolution of investment volume by quarter, €/bn
Investment volume by sector, %
5 largest transactions, €/mln
In Q3 2017 the Italian
investment market reached
€2.1 billion, up by 17%
compared to the same quarter
2016 and exceeding €7 billion
year-to-date.
5 maggiori transazioni, €/mln
Investimenti per settore, %
Foreign vs domestic investments
Office
Retail
Logistics
& Industrial
Hospitality
Nursing
Home
Other
Mixed Use
34.6
1,141.0
971.0
12.0
34.4
Domestics
29.3
6.0
1.7
8.4 2.9
5 Largest
Transactions
Rest of
transactions
5 maggiori transazioni, €/mln
Investimenti per settore, %
Milan
Rome
Naples
1,141.0
971.0
225.2
43.5
635.0
349.8
858.4
5 Largest
Transactions
Rest of
transactions
Rest
of Italy
Mixed
Portfolios
Volume di investimenti per macro regione, €/mln
Rome
Naples
4.0
3.0
2.0
1.0
0.0
5.0
6.0
7.0
8.0
9.0
10.0
Q1 Q2 Q3 Q4
2012 2013 2014 2015 2016 2017
225.2
43.5
953.7
635.0
83.3
239.3
200.7
Once again, institutional
investors preferred the
traditional sectors, in particular
the office and logistics
markets, which gained capital
for a total value of €1.5 billion,
the equivalent of 69% of total
transactions.
The retail sector delivered
€250 million of investments,
mainly from high street assets
in Milan.
The hospitality market
confirmed its positive trend
by capitalizing almost €130
million, growing 44% compared
to the same quarter 2016.
The remaining deals concerned
other real estate sectors,
including mixed use properties
and nursing homes.
The most significant deal was
signed by Blackstone through
the sale of the Logicor logistic
portfolio, for an estimated
value of €600 million, followed
by four further transactions for
an average size of €150 million
each. With regards to these,
some relevant deals concerned
the purchase of two office
assets by Allianz Real Estate
in Milan CBD Porta Nuova
and the sale of the Luxottica
headquarters in Piazza Cadorna,
also in Milan, which falls into
the investment strategy
recently undertaken by Beni
Stabili SIIQ. A significant
transaction related to the retail
sector was marked by the sale
of the building in Via Verri,
Milan, for €92 million.

2. PRELIOS | Italy investment market Q3 2017
The information contained in this publication is for information/illustrative purposes only and has been drawn up on the basis of public information and/or information which is in any case available
to Prelios, but not subject to independent verification. It does not necessarily take account of the current market conditions, which are susceptible to significant changes in the short term, and
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Investment volume by macro area, €/mln
Investment volume by city, €/mln
Type of investors, %
Milan and Rome were
confirmed as the best locations
for foreign investors by drawing
more than €1 billion of capital
and accounting for half of the
total transacted value, up by
12.4% compared to Q3 2016.
In Milan the market recorded
investments for €860 million,
confirming the dynamic
momentum of the city.
On the other hand, the Rome
market delivered €225 million
of transactions and was
primarily driven by the office
and hotel sectors. One of the
most relevant deals
involved the Fedora fund,
managed by Prelios SGR, which
purchased a building complex
in Viale Regina Margherita in
Rome, for €62.75 million.
Volume di investimenti per macro regione, €/mln
Milan
Rome
Naples
Q1 Q2 Q3 Q4
225.2
43.5
635.0
349.8
858.4
Rest
of Italy
Mixed
Portfolios
953.7
635.0
239.3
200.7
Investimenti pe
Foreign vs domeVolume di investimenti per macro regione, €/mln
Q1 Q2 Q3 Q4
Logistics
& Industrial
Hospitality
Nursing
Home
Other
Mixed U
34.4
Domestics
29.3
6.0
1.7
8.4 2.9
0
200
400
600
800
1000
North
West
953.7
Mixed
portfolios
635.0
North
East
83.3
Centre
239.3
South
& Islands
200.7
Investimenti per settore, %
Foreign vs domestic investmentsdi investimenti per macro regione, €/mln
Milan
Rome
Naples
Q1 Q2 Q3 Q4
Office
Retail
Logistics
& Industrial
Hospitality
Nursing
Home
Other
Mixed Use
34.6
1,141.0
12.0
34.4
Domestics
29.3
Foreign
70.7
6.0
1.7
8.4 2.9
225.2
43.5
5.0
858.4
5 Largest
Transactions
Rest of
transactions
xed
olios
635.0
239.3
200.7
Again this quarter, the major
market players were foreign
investors, who contributed to
the volume of investments for
70%, confirming the last three
year trend. The remaining 30%
was generated by domestic
investors, including leading
fund managers, private
investors and banks.
The current uptrend market,
supported by solid signs of
recovery, anticipates that the
volume of investments will be
at least in line with the level
reached in 2016.
At a territorial level the North
West area remained the
macro region with the largest
portion of transactions (45%),
followed by the macro region of
Centre Italy with €240 million,
where the most important deal
was represented by the sale
of a property formerly owned
by Fratelli d’Amico Armatori
and now converted into a hotel
project. The residual 30% of
total transactions, about €635
million worth, was made up of
mixed real estate portfolios
traded throughout the country.