Covivio: positive results from the property sector for Delfin’s heirs

The allocation of capital to the hotel sector and Southern Europe continues. During the first half of 2026, Covivio continued to actively rebalance its portfolio towards the hotel sector, with the acquisition of five leased hotels in Southern Europe for a total investment of 260.5 million (139 million attributable to the Group), comprising four hotels in Milan and one in Torremolinos, on Spain’s Costa del Sol. These acquisitions offer strong visibility on long-term revenues, thanks to the average lease term of around 20 years and target yields in excess of 7 per cent, whilst strengthening the Group’s exposure to southern Europe, which now accounts for around 26 per cent of the pro forma hotel portfolio, compared with around 23 per cent at the end of 2025.

The Milan portfolio comprises four recently refurbished 4-star hotels, totalling around 900 rooms, located in the city’s most prestigious neighbourhoods. The properties were acquired as part of a sale-and-leaseback transaction with Invest Hospitality, one of Milan’s leading hotel operators, and are subject to lease agreements combining fixed and variable rents. The acquisition, valued at 217 million at 100% (115 million for the Group’s share), offers a target yield of around 7% and further strengthens Covivio’s presence in Italia, one of Europe’s most dynamic hotel markets. Following the completion of the acquisition of three hotels in the second quarter of 2026, the fourth is expected to take place in the first quarter of 2027.

In April 2026, Covivio finalised the formation of a joint venture, Blue Owl Capital, relating to three Thales campuses in Vélizy-Meudon. These three assets, previously owned by Covivio (in partnership with Crédit Agricole Assurances for the Hélios 1 site), are now managed by the newly formed joint venture, which is 51 per cent owned by Covivio and 49 per cent by property funds managed by Blue Owl Capital. The transaction values the entire site at €503 million, representing an exposure of €246 million for Blue Owl. As part of this transaction, Crédit Agricole Assurances has sold its entire stake in Hélios 1. Consequently, for Covivio, the transaction represents the equivalent of a €138 million sale at the Group’s shareholding level, representing a premium over the valuation and development costs prior to the announcement of the transaction. The extension to the Hélios 2 property was handed over on 9 July 2026 and is covered by a 12-year fixed-term lease, reflecting the long-standing relationship between Covivio and Thales.

In addition to renewing Christophe Kullmann’s term as Chief Executive Officer for a further four years, until the Annual General Meeting called to approve the financial statements for the 2030 financial year, the board of directors has also decided to appoint Alexei Dal Pastro, formerly CEO of the Italian and German offices, and Aude Grant as deputy CEOs, succeeding Olivier Estève, whose term of office expires on 31 December 2026.

Dal Pastro, who will take up his new post on 1 January 2027, will also retain his current roles. Grant, meanwhile, will join Covivio on 21 September, specifically as deputy CEO with responsibility for the office property business in France.

“These appointments,” Dal Pastro explained to Il Sole 24 Ore, “form part of a succession planning process designed to ensure managerial continuity and prepare the Group’s future with confidence. The aim is to ensure a gradual handover of responsibilities, whilst at the same time making the most of in-house talent and the skills developed over the years. In the role of deputy CEO, I will have the opportunity to contribute even more actively to defining and implementing Covivio’s strategy at European level, drawing on the experience I have gained in international markets and further strengthening synergies and integration across the Group’s various markets. “I will continue to lead operations in Italia,” the manager continued, “a market that plays an increasingly important role in Covivio’s European development strategy, whilst retaining responsibility for our operations in Germany.” “This new role,” concluded Dal Pastro, “also sends a strong signal of the attention the Group pays to Italia and Milan, which over the years has established itself as one of the most dynamic and strategic platforms in the European portfolio. Milan’s proximity to the Group’s decision-making processes is further strengthened as a result.”