Masterfully restored 16th century residence combines Renaissance heritage with modern luxury secured alongside rare short-term rental licensing rights.
Equity Residences is pleased to announce the €2.8 million acquisition of a remarkable three-bedroom apartment in the heart of Florence, located 100m from the iconic Duomo. This represents the first acquisition of its £35m Euro Equity Fund and is anticipated to deliver a robust annual rate of return of approximately 5.5 percent.
The 210-square-metre residence, set within a 16th century palace, represents a rare opportunity to own and operate a fully licensed short-term rental property in one of Europe’s most tightly regulated and culturally significant destinations.
Carefully restored over a five-year period, it seamlessly integrates modern amenities whilst preserving its original frescoes from what was once the palace’s historic library. The result is a unique blend of Renaissance character and contemporary comfort, featuring updated bathrooms, a fully equipped kitchen, and elegant hardwood flooring throughout.
With the Duomo just a two-minute walk away, guests will also enjoy the private balcony with direct views of the famous dome. The apartment has the convenience of elevator access from the first-floor residence. The apartment is expected to become available for use in May.
Equity Residences identified the opportunity in early December and undertook extensive due diligence to ensure compliance with Florence’s strict short-term rental regulations. The acquisition was ultimately structured as three coordinated transactions, encompassing the property, the associated business activity required for licensing, and bespoke furnishings.
Florence, regarded as the cradle of the Renaissance, continues to attract global travellers drawn to its unparalleled cultural heritage. From Michelangelo’s David at the Accademia Gallery to the architectural brilliance of the Duomo, the masterpieces of the Uffizi Gallery, and the historic Ponte Vecchio, the city offers an enduring blend of art, history, and world-class cuisine.
This acquisition further strengthens Equity Residences’ portfolio of exceptional properties in premier international destinations, with London and Rome the next targets for the Luxury Co-Ownership Fund.
Greg Salley, Managing Director of Equity Residences, said: “Our investors are increasingly seeking opportunities that combine exceptional lifestyle experiences with strong investment principles. The Equity Euro Fund builds on our successful track record by expanding into Europe’s most desirable destinations, and the Florence acquisition exemplifies the type of curated properties we aim to offer. This marks an exciting first step for the fund and reflects investor confidence in our model.”
The Equity Euro Fund, launched in October 2025, targets high-quality properties in prime European markets, providing investors with exclusive access to luxury homes while benefiting from potential capital appreciation over the fund’s ten-to-twelve-year life cycle. This acquisition marks the fund’s first transaction and signals the start of its European expansion, following Equity Residences’ successful track record in North America with the Equity Villa Fund and Equity Platinum Funds.
Founded in 2012, Equity Residences now has almost €90 million under management, reinforcing its position as a leading player in the luxury real estate market.
