The Bank of Italy has granted authorisation to Italian REIT Beni Stabili to place its €1.54 bn Telecom Italia portfolio - plus associated debt worth €810 mln - into what will become Italy's biggest ever real estate closed-ended alternative investment fund (SICAF).
As announced in mid-November, Beni Stabili plans to hold 60% of the share capital of this new regulated investment vehicle, while two major international investors, Crédit Agricole Assurances, and EDF Invest, the investment division of the French utility group EDF, will each acquire from Beni Stabili a 20% stake in the SICAF.
The creation of the SICAF, which will take place in Q1 2017, ties in with Beni Stabili's strategy to diversify its tenant base, as announced in 2015.
According to the Italian REIT, the fund deal means it virtually achieves its tenant diversification target almost four years ahead of its planned 2020 goal. Telecom Italia will represent 28% of its portfolio after the SICAF operation, compared with 41% in its 2015 results.
The deal also improves Beni Stabili's LTV, bringing it to below 45% from 50%, while increasing its exposure in Milan to 58% from 51% in June 2015. The company aims to have 80% of its portfolio in the Lombardy capital by 2020.
