Beni Stabili sells 7% of capital in move towards REIT status

Beni Stabili, the Italian real estate arm of France's Fonciere des Regions (FdR), is selling 134 million shares, or 7% of its capital, as part of the process of converting to real estate investment trust (REIT) status by the end of the year.

The EUR 89 mln stake is being sold to Italian and international investors in a bookbuilding process, the Rome-based company said.

Additionally, Beni Stabili will distribute as much as EUR 225 mln of convertible bonds into stock. FdR said it will support the issuance of the bonds and vote in favour of the share capital increase and exclusion of the pre-emptive rights in connection with the offering of the bonds. 'The transactions will enable the company, on the one hand, to take a further important step towards qualifying for REIT status and, on the other, to boost its financial flexibility by raising resources from capital market,' Beni Stabili said.

Bank of America, Merrill Lynch, BNP Paribas and Mediobanca - Banca di Credito Finanzo are joint bookrunners for the placement of the equity-linked bonds and the private placement of the company's shares. The results of the private placement will be made public as soon as possible, the company said. FdR announced in February that it was planning to reduce its stake in Beni Stabili to 52% to allow the Italian arm to qualify for REIT status.