Italian real estate IPO may kick-start growth of market, says EPRA
The listing of Italian property company Coima on the country’s MTA exchange on Friday, following a EUR215 million IPO, may signal the stirrings of a Renaissance in Italy’s small listed real estate sector, according to the European Public Real Estate Association (EPRA).
Philip Charls, EPRA CEO, says: “EPRA welcomes this latest addition to the European listed real estate industry and the first Italian REIT IPO in over a decade. The EUR 215 million secured by Coima, takes the total raised in European real estate IPOs in only three years past the EUR 15 billion milestone.”
Coima is structured as an Italian REIT or SIIQ (Società di Investimento Immobiliare Quotata).
Charls adds that for the past three years EPRA has been actively advocating for an improved REIT regime in Italy, which would give investors access to the listed market of the fourth largest economy in Europe by GDP. Only 0.55 per cent of Italy’s underlying real estate investment market is currently listed – the lowest percentage on the Continent – compared with the European average, which stands at 4.90%.
EPRA believes Italy has strong growth potential. To take Spain as an example, since investor-friendly amendments to its REIT regime in 2013, the Spanish market has added almost EUR 6.0 billion in market capitalisation and increased its proportion of listed real estate to 3.88 per cent.
Over 10 per cent, or EUR15 billion, of the total EUR148 billion raised in all IPOs in Europe since 2013 was for property companies, while real estate’s share of the FTSE European Equities Index is only 3.2%. The total capital raised in IPOs and secondary offerings by European companies in the EPRA Index since 2013 was over EUR 28 billion.