Introductions of PPP investment fund for Turin: Italy
The Italian Demanio agency, a government body managing state property, has summoned fund managers to bid for the contract which can be regarded as a pioneering effort to bring private and public capital to city renovation.
The investment vehicle has been planned to renew publicly-owned buildings with the involvement of private sector fnance. The public-private partnership, dubbed the Turin Format, is aimed to become a model for rejuvenation projects throughout Italy.
In a statement, Demanio said the invitation to bid is part of an agreement with the city of Turin to, “promote, refurbish and redevelop local real estate assets, to help regenerate the city and meet the needs of society”.
The fund’s assets have been given an initial value of more than €110m. Bids must be submitted by 26 May, and the agency will decide on the winner.
Luca Dondi, director general of Nomisma, a research consultancy advising on the project, said state institution CDP (Cassa Depositi e Prestiti), is co-investing. “CDP has not specified its level of investment, though it will be significant," he told local media. "I think that paves the way for the involvement of private sector asset managers to take up the rest of the equity.”
In the Il Sole24Ore newspaper Demanio MD Stefano Scalera told that the funds are, “the most advanced example of institutional partnership for the development of real estate.”
The first holds two buildings in the east of Turin, a state-owned tobacco factory and an office building owned by the city. The city and Demanio have decidedd that the buildings in the first project should be transformed for use as social housing and university buildings.
The Palazzo della Luce, a building that housed the electric utility company Enel has been considered to be the second fund, which will be put out to tender by year end, comprises six properties owned by state railways Ferrovie Statali, and a building belonging to Consap, a state insurance company.