Abu Dhabi, Qatar funds invest in Milan properties

Government-backed investment in Italy picks up as country emerges from three-year recession

(Photo for illustrative purposes only)

(Photo for illustrative purposes only)

Government investment funds in Abu Dhabi and Qatar, as well as in Azerbaijan, have invested a combined $380 million in three different properties in Milan.

Wall Street Journal reported that Abu Dhabi Investment Authority has agreed to buy a 1960s building in the north Italian city, which the newspaper said will be demolished and replaced by a new tower.

Late last month, Qatar Investment Authority completed a deal to acquire the historical building that housed BNL’s (a subsidiary of BNP Paribas) headquarters in Piazza San Fedele in Milan.

The State Oil Fund of the Republic of Azerbaijan is buying a building from the Italian chamber of commerce, bring the total investment – including costs of redeveloping the sites – to $380 million (€350 million).

The investment comes at a time when sovereign wealth funds are investing heavily in Italian property, as its economy emerges from a three-year recession. Data-firm Real Capital Analytics said investment in Italian real estate last year was around $9.7 billion, up from $7.2 billion in 2014. In Milan, 90 percent of investment into city came from foreign investors, according to Knight Frank.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

NOTE: Comments posted on arabianbusiness.com may be printed in the magazine Arabian Business

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
First bank merger in 20 years sets Saudi Arabia up for more deals

First bank merger in 20 years sets Saudi Arabia up for more deals

Q&A look at what the planned merger of HSBC and RBS’s Saudi ventures...

A natural move: How Dubai Chamber is strengthening its ties in Latin America

A natural move: How Dubai Chamber is strengthening its ties in Latin America

With vast resources and more than half-a-billion people, the...

If Saudi future's so bright, why can't these banks find buyers?

If Saudi future's so bright, why can't these banks find buyers?

No big-name global banks eager to buy stakes in Saudi banks,...

Most Discussed
sponsoredTracking