The Carlyle Group has acquired Finrex, the owner of Palazzo Tergesteo in Trieste, from Associazione Cassa Nazionale di Previdenza ed Assistenza a Favore dei Ragionieri e Periti Commerciali. The price was not disclosed.
Built in 1842, Palazzo Tergesteo is a prestigious, neoclassical building located in Piazza della Borsa, in the heart of Trieste. The building covers an area of 14,000 square meters. The ground level hosts a public gallery of shops and cafes, while the other floors are devoted to office and residential use.
The Carlyle Group says it plans to renovate and refurbish the building to create a more efficient space. The project will involve the architectural restoration of the façade and decorations, the common spaces and passage, as well as the conversion of some offices to high quality apartments.
Trieste is located on the eastern Adriatic coast, bordering Slovenia.
“The acquisition of Palazzo Tergesteo allows us to leverage our expertise in managing the refurbishment of architecturally significant historical buildings,” said Guido Audagna, managing director of The Carlyle Group “Moreover, the operation is in line with our investment strategy in Italy, which focuses not only on the major cities but also on less prominent cities which we believe to have potential. In particular, we think that Trieste’s economy will benefit from the integration with Balkan and East European markets.”
Carlyle is investing in this project through its second European real estate fund, Carlyle Europe Real Estate Partners II.