Italian asset manager Coima has raised initial commitments of €400 mln for COIMA ESG City Impact Fund, Italy’s first urban regeneration ESG fund.
The vehicle raised the initial equity from cornerstone investors, including the Italian pension fund for lawyers Cassa Forense, the Inarcassa pension fund for architects and the Cassa Commercialisti pension fund for chartered accountants.
It is expected to become Italy’s largest property fund, with a total investment capacity of €4 bn. With an open collaborative structure including co-investments, partnership and financial leverage, the fund already has a total investment capacity of over €1.5 bn and is targeting further equity raises up to €1 bn, which with leverage will give it a spending power of €4 bn.
The fund will acquire regeneration opportunities across Italy, using a develop-to-core strategy to deliver projects across a range of sectors, including residential and hospitality, with a particular focus on neighbourhood developments to support economic development in the main Italian cities.
The initial pipeline includes a number of potential sites, including former Milanese railway yards such as the Porta Romana area, which has been chosen to host the Olympic village of Milano-Cortina 2026.
With a 20-year life span, the evergreen fund aims to accelerate Italy’s recovery from the economic impact of Covid-19, both through the allocation of private and public capital and through the delivery of long-term ‘green’ real estate, as well as support Europe’s overall ESG initiatives in order to build a more sustainable economy in line with the EU’s framework for the European Green Deal.
The fund is anticipated to financially deliver a 10% IRR and stabilised 5% dividend yield, while its ESG objectives will focus on global challenges such as decarbonisation, occupation, inclusive neighbourhood and building design, and accountability and transparency in reporting.
Coima has a significant track record in the delivery of sustainable urban regeneration projects, achieving LEED pre-certifications and certifications across 76% of its portfolio, and recently selling Gioia 22, Italy’s first Nearly Zero Energy Consumption Building to UBI Banca.
‘Our ESG City Impact fund demonstrates a responsible commitment from us with our partners to actively contribute to the recovery of Italy under a new economical, social and environmental paradigm that delivers long-term sustainable returns while supporting sustainable development to guarantee a greener and more inclusive future,’ said Manfredi Catella, founder and CEO of Coima.
