Palermas villa in Sicily, Italy, was sold by a group of developers for more than €2bn (£1.9bn) to private equity firm TMC Capital Partners in an auction held on Wednesday.
The sale took place at a private auction in the Italian resort town of Valle d’Aosta, the Italian media reported.
The villa is on the site of a 17th-century palace and is located in the Napoli area, which is home to many Italian families and a significant Italian diaspora population.TMC is the owner of two other Italian properties in the area, including a five-storey apartment block in Valle della Giave.
Italian authorities had warned that the sale could set a precedent for future deals between the state and the wealthy in a bid to curb rising housing prices in the country.
The buyers of the villa, which was built in the 12th century, had hoped to make it a private residence for the family of former Italian Prime Minister Silvio Berlusconi, according to a report in La Repubblica newspaper.
Berlusconi was ousted in a general election in 2019.