Coima Res, the Milan-listed REIT, has said that its appetite for risk in terms of investment is likely to increase slightly, in a climate of flattening yields in Italy.
CEO Manfredi Catella said that the firm still had €100 mln of firepower at its disposal for the remainder of 2017, and was using a 'disciplined approach' to that strategy as it evaluated around €1 bn of pipeline opportunities.
'We have a renewed focus on the Milan office market,' he said, 'where our appetite for risk is shifting slightly towards core plus opportunities.'
Italy is currently witnessing record capital flows - some €6 bn in the first half of the year which represents a 60% rise on the same period last year. Given the strong market dynamics, the company would consider 'opportunistic disposals', Catella said. It will also evaluate accelerating its programme of disposing assets from its Deutsche Bank portfolio, he said.
Results underline value growth
Announcing its six-month results, Coima Res reported a 10% increase in the value of its portfolio to €580 mln compared with December 2016.
Excluding the Deutsche Bank portfolio, Catella saw rental growth of 3% in the first half of the year across its assets (0.8% including the bank branches).
64% of Coima's portfolio is currently focused on Milan, with 67% in offices, and 80% with investment grade tenants. 78% of the portfolio is LEED certified.
The company's only purchase to date this year, the Deruta asset in Milan, purchased for €47 mln, is a core office property let to the BNL-BNP Paribas Group. Catella said that an improvement project for the asset was in progress to reposition it.
Meanwhile, redevelopment plans for its co-owned Bonnet mixed-use asset in Milan (pictured), representing a mix of office and retail, would see the asset 'add value' to its Porta Nuova Business District location.
