Active asset rotation in Italy:
EUR162 million new disposals signed at end 2019
In the fourth quarter 2019, Covivio has signed agreements for the disposal of
six office buildings and three shopping malls in Italy, for a total amount of
EUR162 million, thus pursuing the improvement of the quality of the portfolio
through asset rotation & financing its development projects in Milan.
The six assets, representing 56,000 m2, include 5 mature office buildings
located in Milan semi-center and 1 asset located in Rozzano, signed for a total
amount of EUR108.5 million and a net yield of 3.3%.
The 3 shopping malls, representing 67,500 m2,are located in secondary
locations in Vigevano, Montenero di Bisaccia, Nerviano and have a limited lease
maturity (4.4 years). The selling price amounts to EUR53 million. These
disposals adds to the sale of another shopping mall in Ferrara (around 8,000
m2) for EUR13.9m, signed at the end of September. The disposal of those retail
assets has been made at a 9.0% net yield.
Considering the secured disposals of the first half, total disposals in Italy
for 2019 amount to EUR445 million. Covivio moves towards its strategic
objectives: exiting from non-strategic assets and focusing on Milan, which
represents 92% of the Italian offices portfolio (excl. Telecom Italia
In parallel, Covivio also continues to strengthen its successful development
pipeline in Milan, with EUR127 million of new projects launched this year,
bringing the total committed pipeline in Italy to EUR424 million(1). These
projects are 68% pre-let, including 100% for the 2020 deliveries.
"These operations shows the strong dynamic of the Italian investment market and
our commitment to focus our investments in the most dynamic areas of Milan,
which is one of the nerve centers of the group's activity, especially through
developments", commented Alexei Dal Pastro, CEO Italy of Covivio.
Thanks to its partnering history, its real estate expertise and its European
culture, Covivio is inventing today's user experience and designing tomorrow's
A preferred real estate player at the European level, Covivio is close to its
end users, capturing their aspirations, combining work, travel, living, and
co-inventing vibrant spaces.
A benchmark in the European real estate market with 23 BnEUR in assets, Covivio
offers support to companies, hotel brands and territories in their pursuit for
attractiveness, transformation and responsible performance.
Its living, dynamic approach opens up exciting project and career prospects for
Covivio's shares are listed in the Euronext Paris A compartment (FR0000064578 -
COV) and on the MTA market (Mercato Telematico Azionario) of the Milan stock
exchange, are admitted to trading on the SRD, and are included in the
composition of the MSCI, SBF 120, Euronext IEIF "SIIC France" and CAC Mid100
indices, in the "EPRA" and "GPR 250" benchmark European real estate indices,
EPRA BPRs Gold Awards (financial + Sustainability), CDP (A), Green Star GRESB
and in the ESG FTSE4 Good, DJSI World & Europe, Euronext Vigeo (World 120,
Eurozone 120, Europe 120 and France 20), Euronext(r) CDP Environment France EW,
Oekom, Ethibel, Sustainalytics and Gaïa ethical indices.
Covivio is rated BBB+/Stable outlook by Standard and Poor's.
Financial part: BBB+ / Stable outlook by Standard and Poor's
Extra-financial part: A1+ by Vigeo-Eiris