Milan shares lower at midday, Alleanza slumps after Generali plan

Unicredito was up 0.58 pct at 6.08 eur following reports it could sell a majority stake in real estate fund management company Fimit. Alleanza fell 4.25 pct to 9.41 eur after Generali management ruled out any buyout of Alleanza minorities over the period of the new revised business plan. Generali was down 0.71 pct at 30.76 eur as the new plan failed to enthuse the market. The new 2009 profit target of 3.8 bln eur, from 2.4 bln in 2006, was above analysts' forecasts but has already been discounted by the market, traders said.

Buyers 'drawn to Italian property'

The strict land restrictions in Italy are actually good news for those thinking about buying property in the country as they preserve the natural landscape, according to a company that specializes in Italian property. People wishing to develop property in Italy have to ask for special permission to construct features such as pools and make other modifications.Eddie Compton, the director of Realpointitaly.com, said that it is strictly forbidden to build on green field plots in Italy.He commented: "You can't build beyond the footprint of existing buildings - they may be flexible if you're building something which will help the local economy or tourism. "It can also affect the landscaping if there is a forest there then you can't clear the forest to make a drive way.

Italian Government Cuts 2008 Economic Growth Forecast

Sept. 25 (Bloomberg) The Italian government cut its forecast for economic growth next year and said increased public spending will contribute to a higher debt than previously predicted. The $1.8 trillion economy will expand between 1.3 percent and 1.6 percent next year, less than July's outlook of 1.9 percent, Finance Minister Tommaso Padoa-Schioppa said during a parliamentary hearing in Rome today. Italy's debt will rise to 103.5 percent of gross domestic product next year, up from a previous forecast of 103.2 percent. The government predicts debt of 105.1 percent this year, the highest in the European Union.

Alony Hetz buys Pirelli Real Estate stake

Alony Hetz IsraelProperty and Investments has bought 1.6 million shares of Pirelli & C. Real Estate SpA (Milan:PCRE) for €64 million (NIS 365 million), amounting to 3.7% of the company’s share capital. The purchase makes Alony Hetz a party at interest in the Italian company. Pirelli & C. Real Estate is a subsidiary of Pirelli & C. SpA (Milan:PRS), which owns 52.3% of the company. Under Italian law, a shareholder with more than 2% of a company’s share capital is defined as a party at interest. Pirelli Real Estate has a market cap of €1.7 billion. The company is Italy’s largest real estate management company, with €14.5 billion in assets, 86% of which are in Italy, and 70% of which are commercial properties. The company also provides consultancy, broker and financial services, loans, and is a contractor for developers.

For Rent -- Italian Gems In Need of Some Repair

ROME - The 14th century Renaissance villa sits on 42 acres in the hills outside Florence. The main manor house bears the crossed weaponry crest of the Tolomeis, a family of Tuscan aristocrats, and the small chapel is adorned with frescoes of angels at play. All told, there are seven buildings comprising 37,660 square feet.
Villa Tolomei is one of Italy's architectural gems. It is also available for rent. The Italian government is offering a 50-year lease, valued at $102,654 a year, or $5.1 million for the entire term.

Pirelli 1st-Half Profit Up 2.7 Percent

MILAN, Italy - Pirelli & C. SpA's said Tuesday its first-half net profit rose 2.7 percent, boosted by stronger tire and real estate operations. Milan-based Pirelli said in a statement that its net profit, including discontinued operations, rose to 198.3 million euros ($274.1 million) from 193.1 million euros a year before. The tire-to-real estate group said first-half earnings from continuing operations came to 181.2 million euros ($250.49 million), up 48.6 percent from 121.9 million euros a year earlier.

Abu Dhabi to develop partnership with Italy

"The next period will see the launch of a flurry of economic and industrial partnership projects with Italy. A joint economic council similar to the recently formed one between Abu Dhabi and Singapore is expected soon," Khaldoun Al Mubarak, chairman of the executive authority in Abu Dhabi, told reporters at the Castillo Palace in Italy. He was speaking at an event held to promote Abu Dhabi's tourism and economic achievements and landmarks. The event was hosted by Mubadala Development Company in conjunction with Etihad Airways, Al Dar Properties and Abu Dhabi Tourism Authority.

Italian firms find investing in the Czech Republic attractive

Italy is not one of the major countries when it comes to foreign direct investment (FDI) inflow to the Czech Republic. Yet, the last three years saw top financial names such as banking group UniCredit or insurer Assicurazioni Generali taking more steps in the Czech financial market, attracted by profitability above the Western European average. Backing top names, a large number of small firms active in sectors such as real estate, food or fashion carry Italian labels and try to adapt to the Czech investment climate. While these areas offer some room for development, experts say that a large inflow of Italian investments cannot be expected because Italian firms are cost-sensitive and the pressure to reduce costs stimulates them to target Eastern European and Asian countries such as China.

Vatican raises the rent

Looking for an apartment's never easy. But here's a hint if you promise not to tell anybody else: the Vatican's got some good deals. Seriously. Even beyond St. Peters, the Catholic Church owns a lot of pricey real estate in Rome. For years, many of its tenants paid quite reasonable amounts, and they came to believe they were protected from rising rents. But Megan Williams reports now from Rome, their faith was misplaced.

Great choice' of properties in Calabria Italy

There are many opportunities for investors looking to purchase property in Italy, according to one expert. Katrina Tasker of Each Property Med, told the Daily Record that the area of Calabria offers a number of property "bargains", with a "great choice" of homes available. According to Ms Tasker prices for some three and two-bedroom properties in the region are significantly cheaper than in Spain.

Tuscany property still ideal for investors

Property based in the Italian region of Tuscany remains a popular choice for overseas investors, claims a leading real estate company. "The main markets in Italy are Tuscany and Umbria. Then it goes to Le Marche, Puglia and then Abruzzo and Calabria. That's how it runs," she added.

The Catholic Church in Italy benefits from real estate tax breaks

The European Commission has asked Italy for information about tax breaks it gives to the Roman Catholic Church on income from property, after receiving complaints that they amount to illegal state aid. "We have addressed the Italian authorities and asked them for information about this. We are talking about certain tax concessions for the Catholic Church in Italy," Commission spokesman Jonathan Todd told a news briefing on Tuesday. If the Commission opened an official probe and found the Church received aid illegally, it would be up to the Italian authorities to recover the money, Todd said.

Italian property market remains "steady"

According to Annie Temple, managing director of overseas estate agent medpropertyshop.com, the Italian government deliberately limits property construction in order to keep the market "steady" and ensure that it does not become "overrun".Consequently, getting permission to build a house is "very, very hard" in Italy, while even slight alterations to homes in areas like Tuscany are usually not allowed because "you can't change the outside of old properties".Ms Temple stated: "Italy's a steady country; it's not a boom and bust country.