Palaces and luxury hotels are the fortresses of Arab capitals in Italia

Not only yachts, fashion or transport, real estate in Italia is also undoubtedly one of the safes of Gulf investors. From the financial heart of Milan to the Costa Smeralda in Sardinia to the cities of art, the sovereign wealth funds of Qatar, Kuwait, Saudi Arabia and the Emirates have accumulated real estate in different geographical areas of the Peninsula and preside over some of the main poles. "The investments made in Italia by Middle Eastern sovereign wealth funds over the last decade are part of a diversification strategy with a long-term perspective," Angela D'Amico, partner and real estate sector leader at Deloitte Italia, explains at first. It is not a matter of speculative 'hit and run' operations, but of planning that sees Italia as a safe haven.

While rumours grow about a collaboration between the Emirati fund Mubadala, the government and Cdp for the housing plan, Qatar remains the undisputed protagonist of the investment scene in recent years. Through the Qatar Investment Authority (Qia) and its subsidiary Katara Hospitality, the emirate has a haul ranging from executive offices to high-profile hotels. The landmark operation remains the total acquisition, in 2015, of the Porta Nuova project in Milan. An investment of more than 2 billion euro on 25 buildings that gave the Qataris the most futuristic directional area in Italia, today the first district in the world to receive the double Leed and Well certification for sustainability.

But the paths between Doha and Milan had already been previously intertwined, with Katara Hospitality's acquisition of the Excelsior Hotel Gallia in Milan, the iconic gateway to the city next to the central station, on which over 100 million was invested for renovation. These have been joined over time by the prestigious Palazzo in Via Santa Margherita, the current headquarters of Goldman Sachs and former headquarters of Credit Suisse. "Investment in real estate assets in our country represents for these capitals a primarily geographic diversification towards what they consider stable economies in Europe," D'Amico points out.

Leaving the borders of Milan, Qatar has stamped its mark on the Costa Smeralda. In 2012, through Smeralda Holding, Qia took over a package of legendary hotels paid over EUR 650 million by the US private equity fund Colony Capital, led by billionaire Tom Barrack: the Cala di Volpe, the Pitrizza, the Romazzino and the Hotel Cervo, as well as the Marina di Porto Cervo and the Pevero Golf Club. A garrison on one of the most exclusive tourist destinations in Italia and beyond. There was also a look at the capital. In Rome, Katara Hospitality acquired the Westin Excelsior for EUR 222 million. Constellation Hotels Holding, owned by the Qatari sheikh Hamad bin Jassim Al Thani, acquired the luxury hotel The St Regis Grand Hotel in Rome from Starwood Hotels & Resorts Worldwide, for 110 million euro, and the Four Seasons in Florence. In addition to Qia's assets, the Tuscan city saw the entry of Jaidah Holdings (also from Qatar, through Nozul Hotels & Resorts), which took over the Westin Excelsior and the St. Regis on Piazza Ognissanti for 190 million. Cities of art remain magnetic poles of attraction: The Gritti Palace in Venice is also said to be owned by a member close to the royal family. "In this context, interest is focused on real estate assets, almost always prime, and in particular hotel structures in territories with a high tourist and cultural vocation, capable of guaranteeing solidity and returns over time," explains Deloitte's partner.

If Qatar leads the charge, other Gulf neighbours are not standing idly by. Cale Street, a real estate investment company backed by the Kuwait Investment Office, has entered one of the largest urban regeneration projects in Italia: MilanoSesto (former Falck areas). With an investment of EUR 600 million, the fund is participating - together with Hines - in Unione 0, the area development project managed by Prelios Sgr.