Real estate securitizations 7.2: A new tool for Corporate Real Estate?

With Coop Alleanza 3.0’s real estate securitization, Italy’s property market explores new frontiers in financial innovation.

This transaction transformed a portfolio of non-core real estate assets worth €50 million into liquid resources, enabling the company to access new capital while retaining a stake in future revenues. It marks a significant step forward amid evolving regulations and growing challenges in the credit market.

Real estate securitizations in Italy have seen remarkable growth, driven in part by key regulatory developments. The 2019 Budget Law allowed securitization vehicles to directly purchase real and registered movable property, while the Growth Decree of the same year introduced the principle of asset segregation, both of which represented a turning point. These changes, together with further tax clarifications issued in 2021, have spurred the expansion of what is now referred to as the “7.2 real estate securitization market” (in reference to the relevant article of the law), which has seen the number of vehicles created multiply fivefold since 2021, reaching an estimated total value of €2.8 billion.

At the same time, Italy’s commercial real estate market is facing considerable headwinds. Traditional bank lending to the Commercial Real Estate (CRE) sector has shrunk, with bank exposure down 16% in recent years, a reduction in average loan-to-value (LTV) ratios, and increasing difficulty for operators in accessing credit. Across Europe, between 2024 and 2026, around 16% of maturing CRE debt, equivalent to a shortfall of approximately €90 billion—is expected to go unfunded by traditional bank channels. In Italy, this figure stands at about 11% of maturing loans.

Against this backdrop, real estate securitizations are emerging as an increasingly attractive solution, offering a viable alternative to bridge the gap between financing supply and demand. These structures enable access to new capital through innovative and flexible financial tools.

The Coop Alleanza 3.0 transaction involved non-strategic retail assets and a layered financial structure with four risk classes (VAT, senior, mezzanine, and junior). The main players included: Coop Alleanza 3.0, seller of the assets and investor in the mezzanine and junior tranches; Real Estate SPV Project 2203 S.r.l., the securitization vehicle; Banca Ifis: arranger and subscriber of the senior notes; Zenith Global SpA, asset manager and master servicer.

Zenith Global’s innovation played a pivotal role, ensuring efficient management of the underlying assets and safeguarding investors. Its dual role as asset manager and master servicer helped optimize cash flow and support targeted value-enhancement strategies.

This instrument stands out for its flexibility, for several reasons. First, its diversified financial structure allows for the issuance of securities with different risk profiles. Second, the accessibility of the financial tool opens the door to a wide range of stakeholders, including private equity funds, institutional investors, and developers. Third, it is applicable to a broad set of asset classes, spanning residential, commercial, logistics, and alternative sectors such as data centers.

The transaction demonstrates how real estate securitizations can provide strategic solutions for companies, offering immediate access to capital for core business financing as well as tax optimization. Crucially, retaining control of the assets enables long-term strategic decision-making.

Coop Alleanza 3.0’s securitization stands as a tangible example of the transformative potential of this financial tool in the Italian context. In an increasingly complex and competitive market, real estate securitizations could become a key pillar of finance and corporate real estate, driving innovation and sustainable growth.

The topic of real estate securitization as an enabler of value creation for various stakeholders and as a transformative tool for the real estate sector will be discussed at SDA Bocconi on Wednesday, June 18, during the second edition of RES 4 REVolution in Banking Forum.