Vatican discloses its property holdings for first time ahead of London investment trial

For the first time, the Vatican has released information on its real estate holdings, revealing that it owns more than 5,000 properties. The detailed financial disclosures were contained in two documents - the financial statement for 2020 for the Holy See and the forest-ever public budget for the Administration of the Patrimony of the Holy See (APSA). The budget showed that the APSA owns 4,051 properties in Italy and some 1,120 properties in London, Paris, Geneva and Lausanne.

It is worth noting that APSA is a sort of general accounting office which manages real estate and investments, pays salaries and acts as a purchasing office and human resources department. According to the budget, only about 14 per cent of its Italian properties were rented at market rates, while others were rented at cut rates, many to church employees. The document also showed that about 40 per cent were institutional buildings such as schools, convents and hospitals. 

A separate consolidated financial statement for the Holy See showed a €64.8m (£55m) deficit in 2020, down from a €79.2m deficit in 2019. The budget includes the central administration of the Roman Catholic church, known as Curia, that oversees the governing of the 1.3 billion-member worldwide church, its global diplomatic representations and media operations. It is worth mentioning that the Vatican City, including the Vatican Museums and the Vatican bank, has a separate budget.  

Vatican’s London real estate scandal 

The annual budget comes just days before the start of a high-profile trial over a London investment. A former Harrods warehouse in London intended for conversion into luxury apartments is at the heart of the trial opening in the Vatican next week over alleged embezzlement of charity money. The purchase by the Vatican's Secretariat of State nearly a decade ago led to huge losses and now the trial of 10 people in connection with its purchase, including the prominent cardinal Angelo Becciu, starts on Tuesday. 

The 10 people are charged with financial crimes including embezzlement, money laundering, fraud, extortion and abuse of office. While speaking to the official Vatican News, Father Juan Antonio Guerrero Alves, head of the Vatican’s secretariat for the economy (SPE), said that the building will now be sold soon. He said that the trial would be a “turning point” in the Vatican’s credibility in economic matters and that a similar event could not be repeated because of measures put into place.  

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