Reference market

WHY ITALY

The real estate market in Italy experienced a 29% contraction in the overall investment volumes in 2020, reaching a total value of Euro 8.8 billion. The office segment saw the highest share of investment volumes, in line with what was recorded in 2019. The City of Milan continues to attract the highest share of investments, accounting for 38% of total investment volumes.

ITALIAN REAL ESTATE INVESTMENT VOLUMES IN 2020
Euro 8.8 billion
-29% vs 2019
In line vs 2018
-23% vs 2017

INVESTMENT VOLUMES BY ASSET TYPE

investment volumes chart

INVESTMENT VOLUMES BY CITY

investment city chart

INVESTMENT VOLUMES BY INVESTOR ORIGIN

investment origin chart

MILAN: OFFICE MARKET

Img quote Bonfiglioli

The investment market for Milan offices has been relatively active in 2020, with investors focussing mainly on low-risk properties, such as buildings that have been recently renovated and are let on a longterm basis, often situated in very central areas of the city. The letting market has been slower in 2020 compared with the last few years, with corporates mainly focussing on the management of their own operations and reassessing their organizational structures.

Gabriele Bonfiglioli

Head of Investments, COIMA SGR

Milan offices: investment market

The investment market for Milan offices has recorded volumes for Euro 2.3 billion in 2020, a 39% decline compared to the volumes registered in 2019. Valuations of “prime” office properties in Milan have seen a further increase vs 2019, with a yield compression of 20 bps in 2020.



investment volumes chart



prime net



Milan offices: leasing market

The Milan office leasing market recorded a take of 277,000 sq m in 2020, a level 32% below the one recorded in 2019. Coherently with recent years, the demand from tenants is predominantly concentrated on Grade A properties. The headline rental levels for the various districts in Milan has remained relatively stable in 2020 vs the end of 2019.



take up



MILAN OFFICES: HEADLINE RENTS BY DISTRICTS (€/SQM)

District RENTAL LEVEL (DEC-20) Trend in 2020
Historical centre €600/sqm stable
Porta Nuova / CBD €600/sqm stable
Centre €500/sqm stable
CityLife €420/sqm stable
Semicentre €390/sqm stable
Scalo Porta Romana €350/sqm stable
Periphery €280/sqm stable
Bicocca €250/sqm stable
Milanofiori €240/sqm stable
San Donato Milanese €210/sqm stable
Hinterland €210/sqm stable
Sesto San Giovanni €200/sqm stable

SOURCE: CBRE



Milan offices: development projects and vacancy

The year 2020 saw a modest level of completion of office projects and the current development pipeline under construction to be delivered in 2021-2023 is equal to c. 217,000 sqm per annum (c. 1.7% of the total office stock in Milan as of December 31st, 2020) and is already 42% pre-let.

The vacancy rate in the Milan office market is at 9.8% as of December 31st, 2020, decreasing by 40 bps compared to December 31st, 2019. A similar trend is also related to the vacancy rate for Grade A offices, at a level of 2.1% of the total office stock in Milan, decreasing by 30 bps compared to December 31st, 2019.



project completions



vacancy rate



COMPARABLE COMPANIES

COIMA RES is a Real Estate Investment Trust (REIT), owning a portfolio of high quality office properties in Milan. COIMA RES is the only Italian REIT predominantly focussed on the office segment. Comparable companies to COIMA RES are the other six participants to the European Think Tank, namely alstria (Germany), Castellum (Scandinavia), Colonial (Spain and France), Gecina (France), Great Portland Estates (United Kingdom) and NSI (The Netherlands). These companies are leaders in their respective markets, owning high quality portfolios of real estate asset with a large portion of those assets being for office use.

Guidance as of May 13th, 2021

Considering that the impact of the COVID-19 crisis on COIMA RES’ business has been limited so far, COIMA RES is confirming its 2021 guidance of EPRA Earnings per share of Euro 0.49. The guidance will be updated over the course of 2021 to reflect any meaningful update, also taking into account any potential future economic impact from the COVID-19 crisis.