In the light of experiences regarding the listing of certain companies that have exercised their right to utilise the concessional tax regime pursuant to Article 1, paragraph 120, of Italian Law no. 296 of 27 December 2006 (SIIQs - the equivalent of a real estate investment trust), Borsa Italiana provided amendments to the Rules and Instructions on the requirements for the listing of such real estate listed companies. In particular, the following changes have been made:
Minimum Initial Investment and Business Plan
The issuer is required to (i) dispose of an initial portfolio invested in real estate or similar assets with a net asset value amounting to at least €200 million, or (ii) comply with a given ratio of invested capital to capital to be collected, as indicated in the Instructions. Should the issuer fail to meet such requirements, it may nevertheless submit an application for admission to trading on the professional segment of the Market for Investment Vehicles ("MIV"). Secondly, the business plan must include information concerning also the issuer's investment strategies indicating, among other things, the geographical location, the use of the assets and its policy on indebtedness.
Measures to be Taken in Regard of Conflicts of Interest
Borsa Italiana amended the rules governing the aforementioned issuers that could mitigate problems relating to potential conflicts of interest within the SIIQs, by requiring: (i) the adoption of an adequate company policy for the management of conflicts of interest; and (ii) the setting up of an investment committee within the management body, called upon to express a mandatory, non-binding opinion on the most important investments.
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