Italy is to follow the example of the UK and Germany by introducing a real estate investment trust (REIT) next year. On Thursday the Italian parliament passed the 2007 Budget Law which contains the REIT legislation.
Italy is to follow the example of the UK and Germany by introducing a real estate investment trust (REIT) next year. On Thursday the Italian parliament passed the 2007 Budget Law which contains the REIT legislation.
The key characteristics of the real estate vehicle - known as SIIQ in Italian - are an obligation to distribute 85% of the profit; a maximum shareholder stake of 51%, and 35% of the shares to be held by shareholders with a maximum stake of 1%.
The SIIQ comes into force on June 30, 2007, six months after the UK and Germany introduce their own REITS on January 1, 2007. France updated its real estate investment vehicles, creating the SIIC 4, in late December.
