The Guardia di Finanza in Milan, the financial police of Italy, took over real estate properties, bank accounts and stock holdings on Monday to assure it could collect from the banks if their officials were found guilty and the banks were held responsible.
The seizures stem from the banks’ handling of a $2.2 billion municipal bond issue and related financial contracts known as swaps that Milan undertook to retire other debt in June 2005. The lead prosecutor accused the bankers of misleading the city and falsely claiming that the deal would generate savings. If all the costs had been properly included, the prosecutor said, the entire deal would have been illegal under a national law that allows restructuring of debt only if it produces a savings.
Thursday, April 30, 2009
Thursday, April 23, 2009
Sicily tipped as one of the first to emerge when the property market recovers
Sicily is the new Tuscany and could be the next hot spot in Europe when property investors start to look for bargains again.
The Italian island is known more for its Mafia connections than its property market but real estate is starting to open up as people become less concerned with holding onto the ancient family pile........
The Italian island is known more for its Mafia connections than its property market but real estate is starting to open up as people become less concerned with holding onto the ancient family pile........
Friday, April 17, 2009
Pirelli RE says no plans to demerge real estate funds
MILAN, April 14 (Reuters) - Italy's Pirelli & C REal Estate SpA said on Tuesday that it had no plans to demerge its real estate funds and sell them.
Pirelli RE, which is controlled by Pirelli & C SpA tyre group, was responding to a La Repubblica newspaper report that cited banking sources as saying a fund demerger was being studied as part of Pirelli RE's capital increase plan.
'Pirelli RE, for its part, denies categorically that operations or even plans of this type are under study,' the company said.
La Repubblica said on Tuesday that a possible option was for Assicurazioni Generali SpA, which is active in real estate, to acquire part of Pirelli RE's real estate funds, citing the banking sources.
Pirelli RE, which is controlled by Pirelli & C SpA tyre group, was responding to a La Repubblica newspaper report that cited banking sources as saying a fund demerger was being studied as part of Pirelli RE's capital increase plan.
'Pirelli RE, for its part, denies categorically that operations or even plans of this type are under study,' the company said.
La Repubblica said on Tuesday that a possible option was for Assicurazioni Generali SpA, which is active in real estate, to acquire part of Pirelli RE's real estate funds, citing the banking sources.
Wednesday, April 15, 2009
Monday, April 13, 2009
Italian property prices expected to fall further in 2009
Following the worsening of the international economic crisis, housing demand significantly dropped in Italy, but Italians continue to see property as a good medium-term investment, according to a new report.
The Italian property market is now suffering the consequences of the global economic crisis, but Italians still perceive housing as a reasonably safe investment and the sector is expected to recover in 2010, the report from economic intelligence company Nomisma indicates.
Analysts found that residential property sale volumes decreased by 15.1% in 2008. However, the drop was particularly marked in the last quarter of the year, after the deepening of the financial crisis eroded consumers' confidence, it says.
In the other property sectors office sales fell by 11.7% and the commercial real estate market saw decline of 8.7%.
The Italian property market is now suffering the consequences of the global economic crisis, but Italians still perceive housing as a reasonably safe investment and the sector is expected to recover in 2010, the report from economic intelligence company Nomisma indicates.
Analysts found that residential property sale volumes decreased by 15.1% in 2008. However, the drop was particularly marked in the last quarter of the year, after the deepening of the financial crisis eroded consumers' confidence, it says.
In the other property sectors office sales fell by 11.7% and the commercial real estate market saw decline of 8.7%.
Saturday, April 11, 2009
Spazio Investment swings to FY loss
March 26 (Reuters) - Spazio Investment NV (SPNV.L), an Italian property fund managed by Pirelli & C Real Estate (PECI.MI), swung to a full-year pretax loss mainly due to a fall in both the asset values and the fair value of financial instruments.
Spazio also scrapped final dividend for the second half.
The company expects a further fall in asset values in 2009 but a reasonable level of interest from local investors in its portfolio is expected to continue to provide some degree of protection, it said in a statement on Thursday.
Though the fall in commercial property values experienced to date in Italy is not as marked as in other European markets, the outlook for the Italian real estate sector and asset values remains uncertain, the company said.
Spazio also scrapped final dividend for the second half.
The company expects a further fall in asset values in 2009 but a reasonable level of interest from local investors in its portfolio is expected to continue to provide some degree of protection, it said in a statement on Thursday.
Though the fall in commercial property values experienced to date in Italy is not as marked as in other European markets, the outlook for the Italian real estate sector and asset values remains uncertain, the company said.
Friday, April 10, 2009
Monte Paschi seeks capital-boosting property sale
ROME, April 7 (Reuters) - Italian bank Monte dei Paschi di Siena (BMPS.MI) aims to boost its Core Tier 1 capital adequacy ratio by as much as 0.5 percentage points through a sale of real estate on its books at 2.2 billion euros ($2.98 billion), a source close to the operation said.
"Monte Paschi's Core Tier 1 will rise by 40-50 basis points," based on a sale price for the assets of 2.6 billion to 2.8 billion euros, the source said.
Monte Paschi, which is being advised by Mediobanca (MDBI.MI), aims to close the operation by the end of June, the source told Reuters on condition of anonymity.
Monte Paschi currently has a Core Tier 1 ratio of 6.6 percent.
It is applying to use government-backed bonds to shore up the figure further, along with several other Italian banks.
"Monte Paschi's Core Tier 1 will rise by 40-50 basis points," based on a sale price for the assets of 2.6 billion to 2.8 billion euros, the source said.
Monte Paschi, which is being advised by Mediobanca (MDBI.MI), aims to close the operation by the end of June, the source told Reuters on condition of anonymity.
Monte Paschi currently has a Core Tier 1 ratio of 6.6 percent.
It is applying to use government-backed bonds to shore up the figure further, along with several other Italian banks.
Friday, April 3, 2009
Union Investment acquires shopping center in Italy
Hamburg-based Union Investment Real Estate AG has acquired the "Monza" shopping center in Italy for its UniImmo: Deutschland open-ended real estate fund. Union Investment purchased the property from ImmobiliarEuropea S.p.A. for around EUR142.6 million. Advisors to the vendor were the real-estate agency CB Richard Ellis; Union Investment was advised by Jones Lang La Salle.
"Monza" has an attractive tenant base Open since August 2008, the shopping center is located roughly 1.5 kilometers to the northeast of downtown Monza and has around 28,000 square meters of rental space. Besides the shopping center, the development also includes a hotel, offices, and a public service hall. The hotel and the offices will be completed by Fall 2009.
Monza is located to the north of Milan and is the third-largest city in Lombardy, Italy's strongest economic region. With around 59 million consumers, Italy is one of western Europe's major retail markets.
"Monza" has an attractive tenant base Open since August 2008, the shopping center is located roughly 1.5 kilometers to the northeast of downtown Monza and has around 28,000 square meters of rental space. Besides the shopping center, the development also includes a hotel, offices, and a public service hall. The hotel and the offices will be completed by Fall 2009.
Monza is located to the north of Milan and is the third-largest city in Lombardy, Italy's strongest economic region. With around 59 million consumers, Italy is one of western Europe's major retail markets.
Wednesday, April 1, 2009
Under our Tuscan sun
CHIANTI, Italy -- On a cold winter day in 2007, my sister asked me if I'd like to join her on a trip to Tuscany. I didn't have to think long to give her my answer -- yes!
Now, 18 months later, we're on our way to Muricciaglia, our villa in Tuscany. After a couple of days in Umbria, we have decided to take the country roads, as opposed to the superstrada. This proves to be a slower route, but very rewarding. We get a feel for life in small-town Italy as we meander through villages and pass farmland with corn and sunflower fields on either side of the narrow roadway.
As we leave Umbria and enter Tuscany, we pass the hilled town of Cortona, which is famous from the movie Under The Tuscan Sun. That is in fact what got us interested in coming to Italy, but our villa beckons so we must remember Cortona as we saw it on film.
The countryside is subtly changing, with grapevines and olive groves now appearing and the road is beginning to twist and turn as we go upward into the hills.
Now, 18 months later, we're on our way to Muricciaglia, our villa in Tuscany. After a couple of days in Umbria, we have decided to take the country roads, as opposed to the superstrada. This proves to be a slower route, but very rewarding. We get a feel for life in small-town Italy as we meander through villages and pass farmland with corn and sunflower fields on either side of the narrow roadway.
As we leave Umbria and enter Tuscany, we pass the hilled town of Cortona, which is famous from the movie Under The Tuscan Sun. That is in fact what got us interested in coming to Italy, but our villa beckons so we must remember Cortona as we saw it on film.
The countryside is subtly changing, with grapevines and olive groves now appearing and the road is beginning to twist and turn as we go upward into the hills.
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