Key Takeaways
- • Savills IM, the €25.5 billion AUM investment manager, has secured Bank of Italy authorization to enter the Italian real estate debt market through direct lending alternative investment funds (AIFs), marking expansion into a strategically important European lending jurisdiction.
- • The firm will provide origination, structuring, and asset management services to institutional investors with existing debt capital and lending programs, positioning itself to capture demand in a recovering Italian real estate market.
- • Italian real estate investment volumes are experiencing strong momentum, with activity reaching €5.1 billion ($5.9 billion) in the first half of 2025—a 46 percent year-on-year increase—and forecasts project the market will reach approximately €12.4 billion in 2025, representing a ~23 percent annual increase and the highest level in recent years.
- • The entry reflects broader market conditions favoring European real estate debt: lower loan-to-value (LTV) ratios, larger equity buffers, and renewed lender confidence following a substantial valuation reset in European real estate.
- • Giovanni Trespidi will lead the new Italian real estate debt offering, bringing leadership continuity to the expansion.
Summary
Savills IM has entered the Italian real estate debt market following regulatory approval from the Bank of Italy, capitalizing on accelerating institutional investor demand for direct lending solutions in Southern Europe. The €25.5 billion AUM investment manager will deliver origination, structuring, and asset management services to institutional clients holding debt capital and established lending programs. Giovanni Trespidi has been appointed to lead this new business vertical.
The timing of this expansion aligns with a significant recovery in Italian real estate investment activity. Cushman & Wakefield data shows investment volumes reached €5.1 billion ($5.9 billion) in the first half of 2025, reflecting a 46 percent year-on-year increase. Market forecasts project Italian real estate investment to reach approximately €12.4 billion for the full year 2025, representing a ~23 percent annual increase and marking the highest investment level in recent years. This surge signals strengthening confidence in the Italian market among institutional capital allocators.
The macroeconomic backdrop supporting Savills IM's entry includes favorable lending conditions in European real estate broadly. Following a substantial valuation reset across European real estate assets, lending metrics have improved materially: lower loan-to-value ratios and larger equity cushions have reduced lender risk profiles while increasing return potential. This structural improvement, combined with easing interest rate expectations and renewed lender confidence, has rekindled institutional appetite for real estate credit strategies across the continent. Savills IM's direct lending platform positions the firm to serve this demand by offering bespoke debt solutions to borrowers across the Italian market spectrum.
This expansion reflects a broader trend of asset managers and credit specialists scaling European real estate debt capabilities in response to institutional capital flows seeking higher-yielding alternatives in recovering property markets.
The timing of this expansion aligns with a significant recovery in Italian real estate investment activity. Cushman & Wakefield data shows investment volumes reached €5.1 billion ($5.9 billion) in the first half of 2025, reflecting a 46 percent year-on-year increase. Market forecasts project Italian real estate investment to reach approximately €12.4 billion for the full year 2025, representing a ~23 percent annual increase and marking the highest investment level in recent years. This surge signals strengthening confidence in the Italian market among institutional capital allocators.
The macroeconomic backdrop supporting Savills IM's entry includes favorable lending conditions in European real estate broadly. Following a substantial valuation reset across European real estate assets, lending metrics have improved materially: lower loan-to-value ratios and larger equity cushions have reduced lender risk profiles while increasing return potential. This structural improvement, combined with easing interest rate expectations and renewed lender confidence, has rekindled institutional appetite for real estate credit strategies across the continent. Savills IM's direct lending platform positions the firm to serve this demand by offering bespoke debt solutions to borrowers across the Italian market spectrum.
This expansion reflects a broader trend of asset managers and credit specialists scaling European real estate debt capabilities in response to institutional capital flows seeking higher-yielding alternatives in recovering property markets.
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