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 of them. Companies Real estate companies are SPVs carrying out the purchase/sale, management, leasing and build - ing of real estate assets and they are generally formed as limited liability companies ( società a responsabilità limitata or S.R.L.) or joint stock companies ( società per azioni or S.P.A.) and are usually not listed on an exchange (although there are a few exceptions). REIFs REIFs are undertakings for collective invest - ments and alternative investment funds (AIFs) pursuant to the Directive 2011/61/EU (the “AIFMD Directive” ). REIFs must be managed by authorised Italian managers (SGR) or alternatively by EU manag - ers (AIFM) under the freedom to provide services regime (management passport) or by establish - ing an Italian branch. REIFs must invest at least two-thirds of their assets into real estate assets (including rights in rem on these 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 the 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 munic - ipality and the developer regulate various aspects of the development, such as the trans - fer of areas to the municipality for public use and the realisation of urbanisation works (roads, squares, parks, etc). The execution of urbanisa - tion projects follows the guidelines set out in the Public Procurement Code, which has recently been entirely revised by 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/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 out by the Building Law, it is also pos - sible to apply to the municipality for a regularisa - tion 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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