Italy's BPM to sell €1b of property assets

The Italian lender is disposing of 37% of its real estate holdings, currently valued at €2.7 bn.

Italian lender BPM has announced plans to sell roughly €1 bn of real estate assets reducing its property portfolio by 37% from €2.7 bn at present to €1.7 bn by 2023. In the new 2020-2023 business plan, the Milanese bank said that it has already identified €500 mln worth of assets to be put up for sale with the rest to be selected in the short term.

The move would allow the group to improve its Tier 1 common capital ratio by 20 bps.

It is the second €1 bn property sell-off announced in the country over the past few weeks. In early February the Italian pension fund for doctors, Enpam, recruited Deloitte to market a portfolio of 68 properties largely located in Rome and Milan.

Valued at €1 bn, the sale is known as Project Dream and includes 31 office buildings, 10 hotels, 5 retail properties, a logistics facility, a barracks and 17 residential assets in Milan and Rome.

Offices encompass a total of 520,000 m2 while the hotel properties offer 145,000 m2 of accommodation, the retail assets around 30,000 m2 of space in Rome, and logistics represent 90,000 m2 in Milan, for a total of 1 million m2.

Deloitte is believed to have approached around 200 investors with the opportunity, with expressions of interest to be presented by Feb 7. The pension fund has yet to shortlist parties.

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