Pirelli Real Estate, the largest quoted property company in Italy, has joined the debate over the introduction of SIIQs, the Italian equivalent of real estate investment trusts (REITs). In an interview with Italian newspaper La Repubblica, Pirelli RE dismissed concerns that the proposed launch of the Italian REIT is causing the current slowdown in the Italian property fund sector.
Pirelli Real Estate, the largest quoted property company in Italy, has joined the debate over the introduction of SIIQs, the Italian equivalent of real estate investment trusts (REITs). In an interview with Italian newspaper La Repubblica, Pirelli RE dismissed concerns that the proposed launch of the Italian REIT is causing the current slowdown in the Italian property fund sector.
'Growth of the traditional funds for private investors is slowing down in this quarter year-on-year, but this is not due to lack of demand but rather to insufficient supply, as it is becoming increasing difficult to compile portfolios with a risk-yield profile tailored to private investors', Rodolfo Misitano, manager of Pirelli RE's hedge funds, said.
Misitano said Pirelli RE aims to solve this lack of supply by creating funds with a more diverse composition and a maximum capitalization of about EUR 300 mln for both institutional and retail investors.
According to figures by US investment bank Morgan Stanley, the Italian market comprises 59 property funds of which 25 are listed. The funds have total assets under management of EUR 20.5 bn.