EIRE: Lobby seeks to open up property lending in Italy

International insurers and debt funds should join the lobby to open up the restrictive alternative real estate financing market in Italy, according to the managing director of Generali Real Estate.

Giovanni Paviera made the suggestion at the end of an English-language session on alternative financing during Expo Italia Real Estate (EIRE) last week.

Paviera said insurer Generali invested in both direct real estate and real estate loans underpinned by core assets in Italy, France and Germany. 'One of the disadvantages in Italy is that it is not possible for insurance companies to lend directly. They can only do so through another structure and this means more costs and more time,' he said.

Paviera said Generali was not afraid of competition and felt that having more participants in the Italian market was essential. 'We are already working with the Treasury Ministry to open market up.'

'I think it is extremely important to change some rules in Italy to make it easier for other investors and lenders to enter the market. It is a necessity, as sometimes the Italian rules are stupid,' Paviera told the panel.

Earlier, Isabelle Scemama, head of real estate lending at AXA Real Estate and Helmut Mulhofer, head of debt and capital markets at Allianz Real Estate, outlined regulatory, tax and legal impediments that limited international insurers’ real estate lending in Italy.

Panel chairman Olaf Schmidt of DLA Piper called on international players to lobby for change.

Echoing this, Paviera suggested Scemama, Mulhofer and fellow panellists, Anthony Shayle, head of UK real estate debt lending at UBS and Christian Delaire of AEW Europe, join the meetings with the ministry. Paviera: 'The people sitting here could meet with the ministry to explain why it is difficult to do business in Italy. It would be a good opportunity to change the environment.'

The panel discussion was part of the Italy International! programme of English-language session organised by EIRE's scientific committee and DLA Piper.