Italy's Generali Property Investments has launched the EUR 315 mln Scarlatti property investment fund to target institutional investors, Italian newspaper Newspages has reported.

Italy's Generali Property Investments has launched the EUR 315 mln Scarlatti property investment fund to target institutional investors, Italian newspaper Newspages has reported.

Operational from Tuesday, the fund will run for 10 years and owns a portfolio of 50 building. These assets, mainly for office use, were previously owned by the Generali Group. The portfolio is spread across the major Italian cities, with 60% located in the cities of Turin, Rome and Milan. In a statement, Generali said the buildings are leased with a 94% occupancy rate.

The property advisor and management company Patrigest, appointed by Generali to value the assets, said the portfolio is worth EUR 680.9 mln. Nevertheless, Scarlatti is valued at EUR 315 mln due to the deduction of debts amounting to a 50% of the portfolio value and a 7.5% devaluation, Newspages said.

The fund shares will be distributed among Gruppo Generali’s investors, and Generali will retain a 30% stake in the Scarlatti fund. In a statement, the company said the fund's objective will be a 5% yield per annum and that Scarlatti will be used only for low-risk investments.