How is the immense and luxurious real estate heritage that gives the Vatican a headache?

The Vatican owns properties in prestigious areas of Paris, London and Geneva as well as numerous properties in Rome, a heritage valued on billions of dollars, source of independence but also of many scandals.

“When it is said that most of the buildings in Rome belong to the Church and the Vatican, it is simply not true”, Monsignor revolts Nunzio Galantino, President for over two years of management of the patrimony of the Apostolic See (Apsa) in an interview with the AFP

Tired of the ‘sensational’ fantasies evoked by the Pope’s hidden treasure, this jovial Italian is part of the circle of trust of the Pope Francisco, chosen to centralize and control the Vatican’s real estate assets and financial funds.

The properties of the Holy See are largely the result of investments made over 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 State of the Vatican City (44 hectares) under the Lateran Pacts.

The Holy See receives compensation for the confiscation of its territories and ecclesiastical properties, such as the gigantic Quirinal Palace (residence of thirty Popes currently occupied by the President of the Italian Republic).

The Pope of the time, Pío XI, decides to invest in brick in Italy and abroad “To ensure the freedom and independence of the Church”Explained Nunzio Galantino.

737 properties in Paris

In the heart of Paris – Boulevard Saint-Michel, the Odeon or Champs Elysées district – the Diocese’s services have long managed 737 real estate assets (approximately 56,000 m2) worth 595.5 million euros (721.6 million dollars).

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

And in SwissParticularly 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 built in two streets that meet directly in St. Peter’s Square, such as the famous Via della Conciliazione.

In Italy, Apsa leases 2,400 apartments and 600 Italian shops and offices, worth 99 million euros in 2019 ($ 120 million) to the Vatican Treasury.

Of the 1.6 million square meters, 15% is in the open rental market and 30% is subject to subsidized rents, especially for employees and retirees. The remaining 55% is occupied by Vatican institutions or lent for free at schools or universities.

The goal is “improve the performance of real estate assets”, assures the head of Apsa, who acknowledges that some apartments are empty and dilapidated after decades of occupation.

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

Millionaire owners

In this context, Monsignor Galantino admits that he is unable to appreciate the Italian heritage and its totality. Totally outdated data is appearing in the financial accounts, admits a Vatican expert.

For example, St. Peters Basilica It is valued at a symbolic euro, as well as administrative buildings or buildings that can be lent to universities for free.

This does not prevent the Holy See from having a legacy worth several billion dollars.

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

And Apsa is still inventorying its Italian goods!

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

“The virus has slowed down the search in the files” but he hopes to pre-complete the inventory “Late Spring (boreal) 2021.”

Predators on the hunt

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

It is mainly one luxury well located at 60 Sloane Avenue, in the chic London district Chelsea, bought in two stages from 2014. This transaction will be the subject of a trial before the Vatican Justice this year.

Another London ensemble from Five luxury apartments are managed by the investment fund Centurion Global Fund, based in Malta, dat funded with money from the church, “Rocketman”, a film about the gay singer Elton John, who provokes the disgrace of the Vatican and legal proceedings.

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

Real estate scandals are nothing new, though the Vatican wants to take action against predators. In late January, Vatican Justice sentenced a former president of the “Pope’s bank” to nearly nine years in prison for enrichment for fraudulently selling a piece of property owned by the Holy See between 2001 and 2008.

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