sito italiano
Transaction overview
FIP has been the first real estate investment fund (REF) promoted by the Republic of Italy in the field of a wider real estate valorisation programme carried out by the MEF (Ministero Economia e Finanze) through the conferral of properties to REFs.

Under Italian law, REFs are independent pools of assets represented by units held by participants and managed on a collective basis by duly authorised asset management companies. Because REFs are not legal entities, Italian bankruptcy law provisions do not apply to them.

Following a competitive bidding process arranged by the Placement Agents, Investire Immobiliare SGR was selected as Fund Manager of FIP.

In October 2004, Investire Immobiliares board of directors endorsed the FIP Management Rules, which were approved by the Bank of Italy on December 16th, 2004.

On December 29th, 2004 (Conferral/Transfer Date), FIP became the owner of the Portfolio, initially comprising 394 non residential properties occupied primarily by MEF, social security entities and other agencies of the Republic of Italy. The assets were transferred through a conferral and a transfer by way of MEF decrees.

On the same date, FIP made available the Properties to the existing occupiers via the Lease Agreement (9+9 years, automatically renewable on an all or nothing basis) and the further assignment by AdD (Agenzia del Demanio) of such assets to end users.

The Fund Manager first selected REAG Real Estate Advisory Group, a real estate appraiser part of the American Appraisal Group, as independent expert for the initial and the ongoing semi-annual valuations of the Portfolio. The term of the assignment to REAG expired in June 2010 after the second three-year period as per the current Italian regulation, so Investire Immobiliare selected a new appraiser during the second half of the year 2010 and commissioned CB Richard Ellis Professional Service SpA. After the second assignment expiration, in 2013 a new contest has been promoted between main Italian and international advisories: REAG Real Estate Advisory Group has been selected again as new independent expert of the fund.

REAG, at the time of the establishment of Fund FIP, valued the properties at 3.7bn, with the Portfolio being transferred to FIP at 10% discount vs. the aggregate individual market value of the properties, i.e. 3.3 bn.

FIP purchased the transferred properties through a 2bn loan provided by the Initial Lenders and securitised in order to reduce FIPs cost of funding.

FIP issued two classes of units:
  • Class A units for total 1,3bn, with face value of 100.000,00 per unit;

  • Class B unit, with face value of 1,00 (one) per the single unit.

On December 30th, 2004 the Placement Agents underwrote 100% of the Class A Units from the MEF and were to place them to institutional investors in July 2005.

The Class B unit will be assigned to a no-profit institution that will be indicated by the two Chairmen of the italian Parliament.