Beni Stabili has been given the green light to create a fund to house its €1.54bn Telecom Italia real estate portfolio.
The move will create Italy’s largest SICAF, a type of alternative investment fund established as part of the country’s implementation of the Alternative Investment Fund Managers Directive (AIFMD).
The Telecom Italia portfolio makes up a large proportion of the property company’s €3.9bn in assets.
Beni Stabili, listed on the Milan and Paris stock exchanges, will own 60% of the SICAF, while Crédit Agricole Assurances and EDF Invest will each take 20% stakes.
Beni Stabili, part of Foncière des Régions, is seeking to diversify its tenant exposure. The new transaction will reduce its exposure to Telecom Italia from 41% to 28%.
It also reduces its loan-to-value ratio from 50% to below 45%, while increasing exposure to Milan. Assets in the city will now account for 58% of Beni Stabili’s portfolio.
The Bank of Italy gave Beni Stabili, an Italian REIT or SIIQ, authorisation to establish the SICAF.