Assets such as land, barracks, arsenals, military airports, firing grounds and military warehouses will be transferred, in four tranches of E1bn (£675m) each, to the Demanio Agency with a view to maximising the value of the estate and changing its purpose from military to social and cultural use.
A key role in this urban regeneration programme will be played by the regions and the local authorities, which may agree with the Demanio Agency how the assets should be managed in order to meet the social and cultural requirements of the local communities.
The Liguria Region initiative
On 28 February, 2007, the Ministry of Defence identified the first 201 assets to be transferred to the Demanio Agency under the Valore Paese scheme. Assets included in the list may not actually be sold if the Ministry of Culture so requires within 90 days from publication of the Decree in the Official Gazette. Transfer completion with respect to this first tranche is expected by 30 June, 2007.
The Liguria Region was the first public entity to implement the Valore Paese scheme by signing a memorandum of understanding with the Demanio Agency on 4 May, 2007 (the Liguria MoU). The Liguria MoU relates to 16 assets located in
It will now be for the Liguria Region itself, the competent local authorities (provinces and municipalities) and
other public entities (for example, local health authorities) to propose how these assets should be used to best serve the needs of the local communities. Consistency and coordination among the various urban regeneration and development proposals will be achieved by means of a Programma Unitario di Valorizzazione (PUV).
The PUV, a legal instrument created by the 2007 Budget Law that introduced the asset disposal programme, is a development plan prepared at regional or local level to optimise the management and exploitation of the real estate assets owned by the state. Assets may be sold or leased to public entities or private investors to ensure they serve social, cultural, sporting, recreational or educational goals.
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The concession for revaluation is a lease contract with a duration of up to 50 years that, the Demanio Agency hopes, will act as an incentive to the participation of private investors in the Valore Paese scheme. Contracts will be awarded on the basis of public auctions or other competitive bidding procedures. Assets will be leased to private investors to give them the opportunity to complete the various urban regeneration projects by using, in full or in part, private funds.
Investment opportunities
The 2007 Budget Law brought about dramatic cuts to the subsidies regions and local authorities receive from the central government. Also due to these cuts, it is likely that urban regeneration projects will increasingly be funded through private investments and the Valore Paese scheme will be no exception to this trend.
Implementation of the Valore Paese plan will give a number of investment opportunities to any real estate investor or property developer interested in the Italian market. Assets used for military purposes will be sold or leased to public entities or private investors, giving rise to hundreds of urban regeneration projects.
The primary objective will be to transform those assets into buildings or areas capable of serving the social and cultural needs of the local communities, such as public parks, car parking centres, schools, hospitals or sporting centres. This is likely to result in a huge number of public-private partnership deals.
However, the Demanio Agency and the competent regions and local authorities can also agree that the assets be used for other purposes, by allowing, for instance, the construction of shops, offices, commercial centres, hotels and resorts.
Many Italian regions and local authorities will shortly implement the Valore Paese scheme, including the
