Generali Immobiliare Italia, the property asset management arm of Italian insurance giant Generali, has launched a new closed-end real estate fund for professional investors. The Cimarosa fund is the group’s second property fund after the launch of the Scarlatti vehicle in 2006.
Generali Immobiliare Italia, the property asset management arm of Italian insurance giant Generali, has launched a new closed-end real estate fund for professional investors. The Cimarosa fund is the group’s second property fund after the launch of the Scarlatti vehicle in 2006.
The new investment vehicle to be managed by Generali will have an initial portfolio with a market value of EUR 324 mln, consisting of 10 buildings with a total surface area of 150,900 m2. The properties are mostly for commercial/office use, majority-leased and located in the cities of Milan and Rome.
Generali is retaining a 30% stake in the fund, while the remaining units will be placed among investors within the Generali Group.
In a statement, Generali said its units Prunus and Generali Properties are selling the assets to the fund at a 3% discount to market value. The company added that the fund’s gearing will not exceed 35% of the asset value over the life of the fund. The vehicle will run for a period of 10 years, plus a possible three additional years to complete liquidation of the assets.
Cimarosa is targeting a return of over 10%, a level consistent with the low debt level and the fund’s value-added risk/return strategy, Generali said. The fund will have a diversified property management approach, which will include the repositioning of some properties after redevelopment, the change of use for others, as well as complete development projects.
A corporate governance system designed to ensure transparency on key operations has been set up for the fund. Banca Akros acted as financial intermediary.
Generali Immobiliare Italia currently manages two property funds, Scarlatti and Cimarosa, with total assets of EUR 1.7 bn.
