I want to purchase and/or lease a public asset. Which are the procedures?
Sale of Full Ownership
In order to activate the sale procedure for public assets, the property must be listed in the “Real Estate Sale and Development Plan“, a document (drafted by Municipalities, Provinces, Regions and other Local Bodies, as well as by companies or Bodies completely controlled by the aforementioned bodies, usually available to the public on their respective websites) in which the sale and/or development strategy is defined by the entity that owns the property. The Procedure for the Sale of Publicly-Owned Real Estate Assets, is usually established by the publication of a call for tender on the institutional website of the entity that owns the property.
Transfer of Surface Rights
The start of the procedure to transfer the surface rights of a public asset is established by the publication of a call for public tenders on the institutional website of the entity that owns the property, aimed at choosing the subject to which the surface rights of the asset shall be transferred to. Once the transfer expires (max duration 99 years), the surface right expires too and the public entity that owns the property shall automatically become proprietors of the buildings constructed or renovated by the transferee and its assignee.
Redevelopment Long Lease
The redevelopment long lease is a public-private partnerships’ tool that allows the State, following a public tender, to lease public assets for consideration to private parties over a period of 50 years. The goal of this partnership is to carry out reuse, renovation and regeneration works also aimed at introducing new purposes of use in order to pursuit economic or service activities for the citizens. The private subject that shall lease the public assets owned by the State or by local bodies is chosen through a public tender.
Establishing Public Contribution Real Estate Funds
Public contribution real estate funds were born with the intent to ensure more efficiency in developing and increasing the value of real estate assets owned by the State, Regional Authorities, Public Authorities and other companies completely controlled by the aforementioned entities.
In order to further encourage the use of real-estate funds within a wider process of rationalisation and development of public real estate assets, following a decree of the Ministry of Economics and Finance on 19/03/2013, pursuant to Art. 33, par. 1, D.L. no. 98 of 06/07/2011 converted, after amendment, by Law no. 164 of 15/07/2011, Invimit SGR S.p.A. was founded, a fully subsidiary company of the Ministry of Economics and Finance, in order to:
- Promote and manage direct, personal or third-party’s real estate funds created to reduce public debt and generate economies of scale on the territory, encouraging their development (the so-called “Direct Funds”);
- Invest, through the Fund of Funds and upon the subscription of units, in Target Funds established by Local Authorities and managed by SGRs selected through public tenders. To this end, the company collects liquidity not only on the market of qualified investors, but also from specific subjects such as Public Insurance or Social Security Authorities meeting specific requirements, as well as private insurance companies and public financial institution Cassa Depositi e Prestiti S.p.A.
Qualified investors can invest in Public Contribution Real Estate Funds by participating in their management and collecting, upon settlement, the price of the properties once placed on the market.
Public-Private Partnership – Project Financing on Public Real Estate Assets
Project financing is a complex economic-financial operation aimed at realising public works and/or at managing a service that can be implemented, in some cases, also by private parties More specifically, Art. 183, par. 15, D.L. no. 50 of 2016 allows for an economic operator to propose the planning, realisation and management of a public asset or of a service in relation thereto, also if not included by the plan of the offeree.
Project financing can be used to obtain the concession of one or more assets, which must not be object of pending works decided by the public bodies in their plan, to realise private initiatives that shall meet specific public needs, ensuring at the same time the project’s economic and financial sustainability (e.g. realisation of public sport facilities or of an auditorium and management of its complementary services such as bars, restaurants, gyms, etc.).
The concession grants rights to use real estate assets for a specific period of time. This instrument can be used for State-owned properties and/or non-disposable assets of the State or of Local Authorities. It mainly concerns properties suited for (public) use, required for their own development, without the need of building or town-planning amendments.
A lease is a consensual and bilateral contract by which, in this context, the public party (lessor) provides to another party (lessee) the use of a real estate asset for a specific period of time and for a specific amount (rent). The entities that own the public assets are obliged to announce a public tender in order to select the lessee. It mainly concerns properties suited for (public) use, required for their own development, without the need of building or town-planning amendments.