As at June 30, it was valued at EUR25.7 million by JLL.
The sale at EUR34.0 million, or 32.3% above latest valuation, reflects prevailing market conditions and strategic prioritisation into a hotel project, which requires new zoning and planning consents.
This brings SERT's total divestment this year to EUR140.0 million, achieved at a blended 5.6% premium to the latest independent valuations.
Since 2022, SERT has divested EUR409.1 million worth of assets at an average 11.0% premium to the latest independent valuations, in line with the approximately EUR400 million divestment strategy announced in response to the rise in interest rates that year.
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"While the manager had explored an office reconversion strategy, the asset ultimately delivered superior value as a hotel redevelopment, supported by its prime central Rome location," says Simon Garing, CEO of the manager.
He adds that the transacted price lets SERT to crystallise a significant portion of the expected redevelopment upside without committing development capital to a complex, heritage-listed asset.
Proceeds from the sale will be redeployed into opportunities offering higher risk-adjusted returns across the portfolio, says Garing.
SERT units closed at EUR1.61 on Dec 18, up 4.55% year to date, but still a 20% discount to its reported NAV.
