June 5, 2019 / 3:48 PM / 3 months ago

Italy plans to set up 500-million-euro real estate fund

MILANO (Reuters) - Italy will transfer public buildings worth 500 million euros ($563 million) to a newly-created real estate fund, a senior Treasury official said on Wednesday, as Rome works towards a 2019 target of 950 million euros in property sales.

The fund will raise money from domestic and international investors and will be managed by asset management company Invimit, which is owned by the Treasury. It will comprise properties located in city centres, which are already rented out or will be soon.

“Our goal is to improve the profitability of those properties,” Invimit CEO Giovanna Della Posta told a conference on Wednesday.

With a public debt running at more than 1.3 times domestic output, the euro zone’s third-largest economy needs to boost state revenues to keep its finances in check.

The European Commission on Wednesday said Italy’s rising debt breaches EU rules and could warrant starting a disciplinary procedure against Rome.

Della Posta said Invimit was currently looking for fiscal and legal advisers for the fund, which should be ready to launch before summer.

(Adds dropped word in paragraph 2.)

Reporting by Elisa Anzolin, editing by Deepa Babington

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