The Italian stock market regulator has approved changes to the exchange that allows Italian REITs to be traded.

Qualifying reits or Societa d'Investimento Immobiliare Quotate (SIIQ) as they will be known in Italy will be allowed to be traded on the Expandi market from July 23. A minimum market value of €200m (£135m) and 35% free float is required for flotation.

The rules will allow companies less than one financial year old and floated on Italy's Expandi market to convert to a SIIQ. It closely resembles France's reits legislation. The new Italian model stipulates that at least one member of a company's board must have a real estate background, and that no more than 20% of rental revenue should come from a single asset.