Among the most employed types of investment funds available for establishment in Italy are real estate ones. Real estate investment funds fall under the same regulations enabled by the National Bank of Italy and of the financial supervisory authority. These types of funds must invest in real estate assets which grant various right to the participants. According to the law, the following rights may be acquired in an Italian real estate investment fund:
Our Italian company formation agents can offer more information on the legislation on real estate investment funds.
Real estate investment funds in Italy will raise money from various investors. The assets acquired by a real estate investment fund will be managed by a company under very strict regulations. First of all, the managing company must be a special purpose vehicle which will only administer the assets. Secondly, the management company will be a separate entity from the fund and may not own rights in the fund. In order to ensure a conflict of interest between the managing company and the Italian real estate investment fund, the assets must be held by a depositary, which will usually be an Italian bank.
Real estate investment funds may only be registered as closed-ended funds in Italy. The fund must invest at least two thirds of the value in real estate and any other financial instruments related to real estate. Also, as a closed-ended fund, it is not allowed to invest more than 25% in unlisted securities.
When applying for approval with the Italian financial supervisory authority, the real estate investment fund must draft its prospectus in accordance with the provisions related to closed-ended funds. The authorization for a real investment fund is issued in about 90 days in Italy.
For assistance with the registration of the investment company when setting up real estate funds, please contact our company registration representatives in Italy.