Aedes set to pioneer Italian REITs

The board of Italian property company Aedes has approved conversion to a SIIQ, the Italian equivalent of the real estate investment vehicle (REIT). The decision follows the approval in late December of legislation to introduce the tax-efficient trusts as part of Italy's 2007 budget law. Although the Italian REIT is expected to come into force on June 30 2007, the board of Aedes has already 'authorised the ceo to take the preliminary steps necessary to convert to REIT status'.

Aedes will have to wait some more time as the final and more detailed rules on SIIQs will be established by an ad-hoc ministerial decree to be enacted by April 30. Last week the city of Rome hosted a seminar, attended by Italy's junior Economics minister Roberto Pinza, to discuss the SIIQ structure. Aedes has said it hopes that the introduction of SIIQs will provide the opportunity for 'a more in-depth debate among operators, Government and all the parties concerned'.

The company said it will focus during the first quarter of 2007 on firming up its foreign activities by entering into agreements in line with Aedes' business model and on the launch of its Boccaccio property fund dedicated to institutional investors.

The 100-year old Italian firm told PropertyEU that its foreign expansion will focus on residential developments in central and eastern Europe, while favouring the retail sector in recently-entered markets such as Sweden. The firm will apply abroad 'the co-investor and asset management model developed in Italy', which involves taking stakes in joint ventures with regional firmly-established companies.

Last Friday, Aedes stepped into east and central Europe via a 40% equity investment in a joint venture that will carry out projects in Slovenia, Romania, Bulgaria, Serbia and Montenegro. The new venture has already started with a development project in Bucharest. Aedes also boosted its presence in Sweden BY purchasing a 50% of 38 retail properties via an equally-owned JV with REIT AM.