Italian Palaces, Castles Put On Market
Source: http://www.leftfutures.org
Italy's government has unveiled a fire sale of some real gems of the country's heritage due to difficult economic situation in country. The government hopes to raise about 42 billion euro through the property sales. Turning some of this real estate into cash would be a fast way to raise revenue for the country's cash-strapped municipalities, states and national government.
Prime Minister Mario Monti's plan for the economy, which is close to final passage, includes the sale of 350 buildings along with cuts to public spending and other austerity measures. The government hopes to raise about 1.5 billion euro through the property sales during first phase.
The 350 properties include army barracks in Bologna, which were formerly occupied by the Defense Ministry, and Soriano nel Cimino's Orsini Castle, in the Lazio region, which was built by a pope in the 1270s and later used as a prison.
The city of Venice has put a 19 million euro price tag on the 18th century Diedo Palace, which served as a criminal court for years and is now being marketed to foreign investors by Hera Immobiliare. It is one of 18 properties Venice has put on the block. Milan is selling more than 100 buildings, including the Palazzo Bolis Gualdo at 12 Via Bagutta, in the city's famous fashion district. That building's price tag is 31 million euro.
But the plan to sell properties faces headwinds. Many institutional investors, fearing a collapse of the euro, essentially have redlined Italy as well as other members of the euro zone with the biggest financial problems, including Spain and Greece. Moreover, investors would have to assume the risk of dealing with the notoriously slow Italian bureaucracy, fixing up the properties and then finding tenants at a time of anemic economic growth.
Italy isn't the only struggling European country looking for profit from historical buildings. At the beginning of this year Greece put ancient sites for rent.
Prime Minister Mario Monti's plan for the economy, which is close to final passage, includes the sale of 350 buildings along with cuts to public spending and other austerity measures. The government hopes to raise about 1.5 billion euro through the property sales during first phase.
The 350 properties include army barracks in Bologna, which were formerly occupied by the Defense Ministry, and Soriano nel Cimino's Orsini Castle, in the Lazio region, which was built by a pope in the 1270s and later used as a prison.
The city of Venice has put a 19 million euro price tag on the 18th century Diedo Palace, which served as a criminal court for years and is now being marketed to foreign investors by Hera Immobiliare. It is one of 18 properties Venice has put on the block. Milan is selling more than 100 buildings, including the Palazzo Bolis Gualdo at 12 Via Bagutta, in the city's famous fashion district. That building's price tag is 31 million euro.
But the plan to sell properties faces headwinds. Many institutional investors, fearing a collapse of the euro, essentially have redlined Italy as well as other members of the euro zone with the biggest financial problems, including Spain and Greece. Moreover, investors would have to assume the risk of dealing with the notoriously slow Italian bureaucracy, fixing up the properties and then finding tenants at a time of anemic economic growth.
Italy isn't the only struggling European country looking for profit from historical buildings. At the beginning of this year Greece put ancient sites for rent.
