Beni Stabili to convert to REIT status by end-2010

French property group Foncière des Régions plans to reduce its 68% stake in Beni Stabili to just 52% this year, allowing its Italian property arm to convert to the tax-efficient SIIQ status by the end of 2010, Christophe Kullmann, Chief Executive of Fonciere des Regions, told PropertyEU in an interview.

'This had been our initial plan since acquiring a major stake in the company in 2007', Kullmann said. 'However, the conditions of the market were not good at the time, so we had to wait to implement it.'

Foncière des Régions intends to cut its stake through the distribution of Beni Stabili shares as part of its 2009 dividend proposal. This will be put forward during a general meeting to be held at the end of May, Kullmann said.

The move will allow Beni Stabili to comply almost fully with the shareholding limit for the Italian real estate investment trust structure, which allows single shareholders to own a maximum of 51% of shares.

Kullmann said the operation will represent a milestone for the Italian listed property industry and is likely to trigger a new wave of investment activity in the sector, at the same time paving the way for the entry of international players into the Italian market, which has long been closed to foreign investors.