Italy is next European country to take a step in the REIT direction. Italy approved the general principles for a public real estate investment conduit called Societa di Investimento Immobiliare Quotate (SIIQ) on June 30, 2007.

At press time, the Ministry of Economics was approving details for regulation, but were set with the following guidelines. Italian real estate firms may convert to SIIQ status and listed on the Italian Stock Exchange providing they comply with certain conditions, including that no shareholder may hold more than 51 percent of the voting rights or more than 51 percent of the company's revenue rights. Also, at least 35 percent of the company's shares must be owned by shareholders not entitled to a percentage of voting or revenue rights greater than one percent.

The incorporated SIIQ companies must distribute yearly revenues for at least 85 percent of the lesser amount of either the net real estate leasing profit and the overall distributable operating profit.

"SIIQs will establish themselves as an alternative to real estate funds for investors seeking a steady return on their indirect investment in property," says Pietro Del Bufalo of Lovells LLP, an international law firm. "They appeal to retail investors seeking annualized distribution of profits, as well as the institutional investor looking to diversify their real estate portfolio with liquid and dividend-bearing investments. The inception of the SIIQ will inevitably allow greater access to Italian financial markets and contribute to their growth."