The resignation of Italian prime minister Romano Prodi may not only stall Italy's nascent process of economic overhaul, but may also delay the introduction of real estate investment trusts (REITs) in the country, researchers at merchant bank Kempen & Co warned yesterday. 'The political turmoil could create some uncertainty about the introduction of REITs, and might even cause a delay', Martijn Geers, a property analyst a Kempen & Co, told PropertyEU. 'But , he added, 'in our opinion the legislation will still come through.'
The resignation of Italian prime minister Romano Prodi may not only stall Italy's nascent process of economic overhaul, but may also delay the introduction of real estate investment trusts (REITs) in the country, researchers at merchant bank Kempen & Co warned yesterday. 'The political turmoil could create some uncertainty about the introduction of REITs, and might even cause a delay', Martijn Geers, a property analyst a Kempen & Co, told PropertyEU. 'But , he added, 'in our opinion the legislation will still come through.'
The SIIQ legislation, the Italian equivalent of REITs, was expected to come into force in July 2007. Introduction was approved in December last year as part of Italy's new budget bill for 2007. The draft bill for the new SIIQ regime was to be finalised on April 30.
Geers still expects the SIIQ legislation to come into force on July 1. 'But,' he added, 'it will still take some time to sort out what is going to happen.' So far shares in Italy's largest property companies, Beni Stabili and IGD, have remained virtually unaffected by the news, Geers said.
Prodi's resignation was prompted by the government's defeat in the senate over foreign policy and Italian participation in Afghanistan. The government fell two votes short of the backing it sought. Italy's President Giorgio Napolitano has already begun talks to form a new government. It is considered unlikely that Napolitano will call for early elections given the fact that the current centre-left still has confidence in Prodi. Kempen & Co expects the current government to continue in a slightly changed form.