Real estate fund manager Coima has launched its third opportunistic fund, with a target of raising €500m by 2024 to decarbonise real estate across major Italian cities.
IPE Real Assets understands that Singaporean wealth fund GIC is Coima Opportunity Fund (COF) III’s cornerstone investor, having made an initial €200m commitment to the fund at its first close.
Coima said the COF III is focused on building a portfolio of next-generation carbon-neutral real estate projects in the office and residential sector, particularly brown-to-green urban redevelopment and retrofit projects in central areas of Milan and Rome where corporate demand for high-quality sustainable real estate is strong.
The fund will last a decade and will primarily target international institutional investors, with a goal of raising €500m in 2024. Through financial leveraging the fund will have an overall investment capacity of around double this amount, and a pipeline of projects worth more than €1bn has already been identified. The fund targets a levered internal rate of return (IRR) of 14%, according to Coima.
Separately, ESG City Impact Fund (COIMA Impact Fund), Coima’s urban regeneration environmental, social and governance fund has so far raised over €800m from Italian institutional investors and is set to reach its €1bn in investment by year-end, and has now increased its target size from €1bn to €2bn, the manager said.
Coima is seeking to raise over €3bn in investment over 2024-2026 through sustainable investment vehicles classified under Article 8 or Article 9 of the European Union’s Sustainable Finance Disclosure Regulation.
Manfredi Catella, founder and CEO of Coima SGR, said: “The first close of COF III and the expansion of our Coima Impact Fund, along with other key milestones achieved by our sustainable investment vehicles, underlines Italy’s continued importance as a strategic market for national and international capital focused on sustainable urban regeneration.”
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