Generali Immobilier set to launch first hotel fund

Generali Immobilier is set to unveil the launch of a large hotel fund in the next weeks, with the first closing expected to take place between the end of 2008 and the beginning of 2009, Alban Liss, director of asset management and investment at Generali, told PropertyEU. More details about the fund - Generali's first hospitality investment vehicle - will be disclosed during the summer, he added.

Liss pointed out that the company is currently active in the hotel market segment via a 20% stake in Fonciere des Murs, as well as a majority stake in Invesco's EUR 1bn hotel fund, which was launched at the end of 2006. Last year, the Invesco-managed fund bought a hotel portfolio consisting of five assets in Germany, Poland and France for EUR 120mln, while in May this year it bought the Patio hotel in Aberdeen, Scotland.

The hotel fund is part of Generali's new strategy aimed at diversifying the company's portfolio in terms of asset basis and geographic location. The company also plans to significantly boost its exposure to the retail sector, which now represents just 8% of the total portfolio. Generali's retail properties consist of 155 high-street retail units which the company bought from Westbrook Properties in 2005, as well as 14 supermarkets and hypermarkets acquired at the end of 2007 from retail group Casino for EUR 266mln.

The properties were transferred last year to Generali's new OPCI investment vehicle, Immocio. Liss added that the company is also active in retail development via a joint venture with French retail developer Virgil.

Outside of France, Generali is developing a large shopping centre in Portugal. The mall, located in A Coruna, was bought in May from Bouygues for about EUR 45mln.

Generali has a real estate portfolio worth around EUR 23bn with a vacancy rate of less than 3%. About 13% of the assets are located in France, while Italy makes up another 7%. The Italian insurer's real estate unit represents around 10% of the group's total business.