Generali plans EUR 7 bn investment in European property

Italy's Generali plans to invest up to EUR 7 bn in European property in the coming three years. The company is also considering shifting assets into a real estate investment trust (REIT), Generali property investment's general manager Giovanni Paviera told news agency Reuters.

In the next two to three years, Generali will target investment opportunities in Europe, especially in real estate markets where the company is already active such as France and Germany. 'In Europe, returns are lower, but investments are safer, which suits us,' said Paviera. 'Total returns are not so high but they are constant, stable and we have very long holding periods.' The company has EUR 18 bn of real estate under management and aims to allocate 10% of total assets to real estate over the next three years. At the end of 2005, Generali had total assets of some EUR 250 bn.