ITALY Law and Practice Contributed by: Guido Alberto Inzaghi, Ivana Magistrelli, Silvia Gnocco and Gabriele Paladini, SI – Studio Inzaghi
5. Investment Vehicles 5.1 Types of Entities Available to Investors to Hold Real Estate Assets Real estate investments in Italy are mainly car - ried out via one of the following types of invest - ment vehicles, or a combination thereof. Companies Real estate companies are special purpose vehi - cles carrying out the purchase/sale, manage - ment, leasing and building of real estate assets. Real estate companies are generally formed as limited liability companies ( società a responsa- bilità limitata – S.r.l.) or joint stock companies ( società per azion i – S.p.A.), and are usually not listed on an exchange (with few exceptions). REIFs REIFs are undertakings for collective invest - ments, and are generally used to invest in a variety of real estate assets. REIFs must be managed by licensed Italian managers (so-called SGR), or alternatively by non-domestic EU managers under the freedom to provide services regime (management pass - port), or by establishing an Italian branch. REIFs must invest at least two-thirds of their assets into real estate assets (including rights in rem on such assets, equity interests in real estate companies, and units of other REIFs). The remaining third may be invested in listed or non- listed financial instruments. REIFs may not directly own business activities, which are deferred to affiliates indirectly owned by the REIF.
Building permits expire if the developer fails to carry out the works within given timeframes. 4.5 Right of Appeal Against an Authority’s Decision An operator who requested and was denied a building permit may challenge such denial before an administrative regional court. Third parties may challenge an existing title (before the administrative courts) if they have legal standing and interest to sue (ie, they can prove they have a direct interest in the develop - Through town planning agreements, the munici - pality and the developer regulate various aspects of the development, such as the transfer of areas to the municipality for public use and the reali - sation of urbanisation works (roads, squares, parks, etc). The execution of urbanisation pro - jects follows the guidelines set out in the Public Procurement Code, which has recently been entirely revised (Legislative Decree No 36/2023). 4.7 Enforcement of Restrictions on Development and Designated Use Any building works carried out in violation of building or town planning regulations may be subject to a suspension order, a demolition order and/or an order to re-establish the legitimate status of the building. The developer may also incur administrative and/or criminal liability. In certain cases set forth by the Building Law, it is also possible to apply to the municipality for a regularisation procedure to address any building abuses or non-compliance. ment project and are affected by it). 4.6 Agreements With Local or Governmental Authorities
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