Kennedy Wilson Europe Real Estate has invested in its first Italian real estate, purchasing a portfolio of nine office buildings for €185.5 million ($205.3 million). They purchased the properties—in cash—from InvestiRE SGR.
According to Real Capital Analytics (RCA), a commercial real estate data and analytics company, about €6.9 billion has been invested in Italian commercial real estate in the first three quarters this year, more than doubling its volume from last year. Volume has also been up in Europe this year. In the first three quarters total volume was €200.7 billion, up 30% from the same period last year, RCA reports.
Increased competition for assets in bigger international markets, such as the U.K. and Germany, has driven prices up, pushing prospective returns down, thus luring investors seeking a higher yield to purchase properties in other regions, including Italy.