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Financial Times: Italian REITs Look to Test Investors' Property Appetite with IPOs

According to The Financial Times: Two Italian real estate investment trusts are planning initial public offerings in coming weeks in a test of investor appetite for the country’s recovering commercial property sector.

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“If they can swallow some discount [to net asset value] at the time of the IPO, it’s definitely worth being a Reit versus a private vehicle,” said Peter Papadakos, managing director at analysts Green Street Advisors.

“You would hope for a snowball effect — if we do have more Reits in Italy that will help transparency and further Reit growth in the country. The real estate value in the hands of publicly traded companies is substantially below where it should be.”

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“Investors have seen sharp yield compression in Spain and more development in Spanish offices [increasing supply], so they are more open-minded about shifting their attention to Milan and Rome in 2016,” said Mr Papadakos.

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To view the full article on The Financial Times, click here.