Financing of a real estate operation in Italy

Raizers now offers investors real estate crowdfunding located in Italy. Discover the specificities of Italian operations.

A particular structuring

Within the framework of an Italian operation to be financed on Raizers and in order to use crowdfunding, a particular structuring must be set up. Indeed, while waiting to obtain its European approval (PSFP), Raizers cannot raise funds directly from an Italian company.

Therefore, a company wholly owned by Raizers SAS must be created. It is this company that acts as the issuer and raises the funds. These funds will then be transferred to the Italian company carrying the project via a credit agreement. This contract established between the Italian company and the company created by Raizers duplicates all the conditions of the bond contract.

The specificities of Italian real estate operations

A simplified administrative process

In Italy, there are two types of administrative authorizations: the building permit and the SCIA.

The building permit concerns real estate developments and is similar to obtaining a building permit in France.

The SCIA(Déclaration certifiée de commencement d'activité, in Italian Segnalazione Certificata di Inizio Attività), which is a town planning authorization that does not require prior approval, covers all renovations as long as the structure of the building is not changed.

A significant need for equity capital for real estate operators

In Italy, the VEFA system does not exist. Thus, there are no calls for funds as the work progresses. This is why real estate operators need significant equity to finance the work.