Spain 
Italy 
Greece 
New Regime for Allocation of State-owned Properties to Rental Market Published in DR
6 December 2017
The new special regime for the allocation of real estate from the private domain of the State’s direct and indirect administration to the National Building Rehabilitation Fund (FNRE) was published today in the official Diário da República.
The fund will be directed towards the realisation of projects concerning the rehabilitation of real estate of the direct or indirect administration of the State (including public institutes) that are vacant or unoccupied for subsequent placement on the rental market. The measure aims to boost urban regeneration and the repopulation of city centres.
According to the document, the integration of real estate in the FNRE will be accomplished through its sale to the fund, in exchange for investments units, following the valuation established under the General Scheme of Collective Investment Undertakings (RGOIC).
This implies that, prior to the entry of property into the FNRE, there must be work to identify the property, assess its potential value, analyse the economic viability of the operation and carry out the necessary formalities for integration of the property to the fund.
Accordingly, the services, bodies and entities must send “an identification of the real estate covered by this decree whose use is assigned to them, or for which they are the property management entity, and which are in a situation of availability,” by March 30 of each year.
According to the Portuguese government, although the integration of the real estate of the State’s private domain and the public institutes into the FNRE derives from its sale, the application of these properties in the investment fund “constitutes a source of sustainable income for entities managing public real estate, through the respective investment units.”
It is also expected that the income deriving from the FNRE units can be applied to the conservation of the public building stock through the Heritage Conservation and Rehabilitation Fund, “constituting a virtuous and sustainable cycle in which the available assets are monetized, freeing the municipalities from costs for their eventual rehabilitation and subsequent conservation, as well as management tasks, and generating revenues that can be applied to the conservation of the public real estate assets essential to administrative activity. ”
Original Story: Diário de Notícias / Lusa
Translation: Richard Turner