Italian REITs seen trading on exchange by spring 2008

Italy's own version of real estate investment trusts (REITs) are expected to begin trading on the Milan stock exchange in spring 2008, Luca Lombardo, the head of the small and mid-caps market of the exchange, said in an interview with Italian financial newspaper Finanza & Mercati.

The Italian government recently approved measures for the establishment of Italian REITs, known as Società d'Investimento Immobiliare Quotate (SIIQ), although market players are still awaiting publication in the government's Gazzetta Ufficiale (Official Gazette) of the final version.

Lombardo told the newspaper that the stock exchange has spoken in the last few months to at least 50 potential groups that could list as SIIQs. In addition to real estate companies, insurers and banks, interested parties include port management, logistical infrastructure and telecommunications towers group.

The current Italian SIIQ regime envisions that at least 35% of a SIIQ must be in the hands of investors with no more than a 1% stake. Lombardo told the newspaper that the stock exchange has proposed increasing this level to 2%, aligning it with the level at which shareholders in most companies are required to communicate their holdings to stock market regulator Consob.

SIIQs will trade on a dedicated segment of Milan's Expandi market.