A Family Office specialized in real estate investments, in partnership with FREO Group, has closed the acquisition from an Italian institutional investor of a portfolio of four properties located in Milan and Rome, with a total surface area of approximately 16,000 sqm.
The transaction, with a total investment value of around €200 million, includes a redevelopment program aimed at repositioning assets currently designated for office use—an asset class facing increasing challenges—into high-demand classes such as hospitality and residential.
In recent years, the office sector has experienced growing structural difficulties, marked by declining demand and rising vacancy rates, particularly for properties that no longer meet ESG standards or reflect new working models. Against this backdrop, the strategic conversion of office buildings into alternative uses represents not only a compelling investment opportunity but also a concrete response to evolving market dynamics and urban needs.
The properties acquired are located in prime areas in the historic centers of Milan and Rome, two markets that continue to attract strong international interest and show increasing demand for high-quality housing and hospitality solutions. The strategy is to unlock the potential of underutilized office assets and transform them into next-generation properties aligned with emerging trends—from the growth of international tourism and business travel to the need for premium urban housing.
Redevelopment works, scheduled to begin in 2026, will have a predominantly conservative character, preserving and enhancing the architectural value of the assets while integrating state-of-the-art technologies in energy efficiency and sustainability. This approach will maximize the long-term value of the portfolio and contribute to the broader process of urban regeneration.
“The conversion of office buildings into new uses is one of the most important drivers for revitalizing the Italian real estate market today,” said Paolo Rela, Managing Director – Head of Italy for FREO.
“Through this transaction, we aim to breathe new life into centrally located properties which, although they have lost their appeal in their original configuration, can become catalysts for neighborhood development and help redefine the residential and hospitality offering in Milan and Rome”, said Nicola Berghella, Investment Director for FREO.
This acquisition highlights the ability of FREO Group to deliver innovative asset management and repositioning strategies, combining long-term value creation for investors with tangible benefits for the cities.