Weaker H1 demand for Italian property funds: Assogestioni

The first six months of 2010 saw weaker investor demand for the Italian real estate funds, with total net inflows plunging by over 40% year-on-year to EUR 328 mln, according to the latest research released by the Italian association of real estate fund managers, Assogestione.

The figure compares to some EUR 548 mln of net inflows recorded in the same period in 2009 and is down by over 50% on inflows of EUR 691 mln reported in H2 2009. The total value of the assets managed by the Italian funds has increased by 8.4% over the past 12 months. The real estate fund industry has seen the launch of 10 new funds over the course of the year, bringing the total to 163. The vast majority (140 funds) are excluisvely accessible to institutional investors, representing a total value of over EUR 16.5 bn, while retail funds (23) account for EUR 5.6 bn worth of assets.

The office property sector represents the lion's share of the industry, with 52.2% of assets, while retail property take up an additional 18%. Just over 7% of the industry's assets are located abroad. Fimit represents the largest SGR real estate asset management player, with EUR 5.5 bn worth of assets under management, followed by Pirelli Re Sgr (EUR 5.4 bn) and Investire Immobiliare Sgr (EUR 4.1 bn).