Italy's ministry of defence plans to transfer EUR 700 mln of real estate assets to a new fund which will be operational by the end of the year.

The institution has mandated bank Unicredit to advise on the sale process, which involves an initial portfolio of five assets in Rome. Plans are to dispose of up to 300 properties to the fund in later stages, according to Italian press reports.

The Italian defence ministry has been trying to offload its property assets for the past three years. In 2009, the public authority announced during the Mipim fair in Cannes that it planned to offload roughly half of its total portfolio, consisting of thousands of assets in major city centres across Italy.

Despite the initial enthusiasm for the operation, very few sales have materialised. Attempts earlier this year to sell a number of barracks and other assets in Emilia Romagna through public auctions ended with no bids.

The properties were earmarked for sale after having become redundant due to the downsizing of Italy's armed forces. Most of the assets are to be refurbished or redeveloped.