Italian defence ministry to close first property sales by end-2009

Italy's ministry of defence expects to carry out its first property disposals over the next six months as part of a major sell-off programme, spokesperson Riccardo Cristoni said at the Mipim fair in Cannes. The disposal programme, which involves around 50% of the ministry's total portfolio, consists of thousands of assets in major city centres across Italy including Venice, Milan and Florence. The crown jewel is said to be the Arsenale shipyard in Venice, which takes up around 15% of Venice's total surface area, Cristoni said.

The properties to be sold off have become redundant due to the further downsizing of Italy's armed forces. Pending approval from the relevant local authorities, they will be converted into commercial real estate including hotels, office and logistics properties and residential buildings.

Cristoni said the ministry had received several expressions of interests during Mipim from both local and international investors. 'The ministry will carry out the transactions with an entrepreneurial spirit,' he said. The properties are expected be transferred soon to a new company, Difesa Servizi Spa, which will be responsible for the rationalisation and valorisation of the portfolio.

The defence ministry is currently reviewing the properties in its portfolio, Cristoni said, with a first package of around 1,000 assets ready to be put on the market. 'We are waiting for parliament to give us the green light for the launch of Difesa Servizi to embark on the first asset sales.'

The properties will be sold through public bidding procedures. In exchange for the buildings, the ministry will ask private investors to construct housing for military staff or new real estate projects that better suit its current needs. Around 15% of the proceeds from the sales will be awarded to the local municipalities.