How is the huge and luxurious real estate heritage that gives the Vatican headache

The Vatican has properties in prestigious areas of Paris, London and Geneva and countless properties in Rome, a valued heritage billions of dollars, source of independence but also of many scandals.

“When we say that most of the buildings in Rome belong to the Church and the Vatican, it is simply wrong”, Monseigneur’s revolts Nunzio galantino, president for more than two years of the Administration of the Patrimony of the Apostolic See (Apsa) in an interview with the AFP.

Tired of the “sensational” fantasies evoked by the hidden treasure of the popes, this jovial Italian is part of the circle of trust of the dad Francisco, chosen to centralize and control the real estate assets and financial funds of the Vatican.

Most of the properties of the Holy See are the result of investments made for more than a century.

The year 1870 marks the end of the Papal States, annexed to the Kingdom of Italy. Six decades later, in 1929, the Vatican City State (44 hectares) under the Lateran Pacts.

The Holy See will be compensated for the confiscation of its territories and ecclesiastical property, such as the gigantic Quirinal Palace (residence of thirty popes currently occupied by the President of the Italian Republic).

The pope at the time, Pío XI, decides to invest in Italy and abroad in brick “To ensure the freedom and independence of the Church», Nunzio Galantino explained.

737 properties in Paris

At the heart of Paris – Boulevard Saint-Michel, Odéon or Champs Elysées district – the services of the bishopric have long managed 737 real estate assets (approximately 56,000 m2) valued at 595.5 million euros (721.6 million dollars ).

In London – Saint James Square, Kensington or New Bond Street – 27 buildings (4,600 m2) are valued at 108.5 million euros (131.4 million dollars).

And in Swiss, in particular in Geneva and Lausanne, 140 assets (more than 16,000 m2) are valued at more than 91 million euros (110.2 million dollars).

In Roma, the church has entire buildings that were built on two streets that converge directly on St. Peter’s Square, such as the famous Via della Conciliazione.

In Italy, Apsa rents 2,400 apartments and 600 Italian stores and offices, which provided 99 million euros in 2019 ($ 120 million) in Vatican coffers.

Of 1.6 million square meters, 15% are in the free rental market and 30% are subject to subsidized rents, particularly to employees and retirees. The remaining 55% are occupied by Vatican institutions or are loaned free of charge to schools or universities.

The objective is improve “the performance of real estate assets”, assures the boss of Apsa, who recognizes that some apartments are empty and degraded after decades of occupation.

But far from mercantile logic, The Holy See has recently chosen to dedicate a building to the good works of the Pope, despite its direct view of the Plaza de San Pedro. And on one of the most elegant Roman hills, a sumptuous edifice has been dedicated to the training of the clergy.

Millionaire owners

In this context, Monsignor Galantino admits that he is incapable of valuing the Italian heritage and its totality. Totally obsolete data appears in the financial accounts, recognizes an expert from the Vatican.

For example, Saint Peter’s basilica It is valued at one symbolic euro, like administrative buildings or those loaned free to universities.

This does not prevent the Holy See from having a heritage valued at several billion dollars.

Hundreds of apartments are managed by a ministry which includes missionary activities, additional equity valued at “3,000-4,000 million“By the economic newspaper 24 hour sun, which concludes that real estate on the rental market could reach 6,000 million euros ($ 7,271 million).

And Apsa is still taking inventory of its Italian products!

“At the beginning of the 19th century, many religious congregations were not recognized by the Italian state; it was normal at the time to attribute their property directly to the Holy See. Since the 1980s we have returned goods to congregations, but with a few errors “explains the prelate, who is looking for between 70 and 80 writings.

“Virus slowed down searching of files” but he hopes to complete the inventory for “End of spring (boreal) 2021.”

Predators on the prowl

Pope Francis has just centralized in Apsa’s hands the London properties acquired by the powerful Secretary of State (central administration) through opaque channels and greedy Italian intermediaries.

It is above all a upscale well located at 60 Sloane Avenue, in the chic district of London Chelsea, purchased in two stages from 2014. This transaction will be the subject of a process this year in the Vatican justice.

Another London ensemble of Five luxury apartments are managed by the investment fund Centurion Global Fund, based in Malta, who funded by Church money, “Rocketman”, a film about homosexual singer Elton John, causing shame in the Vatican and lawsuits.

Pope called for “withdrawal as soon as possible” of these investments or at least “eliminate the risk of damaging the reputation” of the Church.

Real estate scandals aren’t new, but the Vatican wants to act against predators. At the end of January, the Vatican justice sentenced a former president of the “Pope’s bank” to nearly nine years in prison for enrichment for having fraudulently sold some twenty real estate belonging to the Holy See between 2001 and 2008.

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