In 2017, real estate funds continue to hold a higher share of real estate assets (82%) than the minimum level (67%) imposed by legislation and regulations.
However, this share decreased slightly compared to the previous year (85%) returning to the levels reached
in the years 2014 and 2015.
The main intended use is the office tertiary sector, followed by commercial (shopping centers and parks, supermarkets), health care residences and hotels, which are flanked, to a limited extent, by uncovered and covered parking spaces, warehouses, tourist villages, barracks, industrial warehouses, multiplex cinemas.
From a geographical point of view, the choice of properties located in the North prevails (especially the North-West), with the cities of Milan, Turin, Bologna, Lodi, Modena, Biella, Como, Padua, and in the Center (with Rome other cities).
This is the trend that emerges from XI Real Estate Finance Monitor, the study carried out by
Department of Economics and Management of theUniversity of Parma in collaboration with Caceis Bank (asset servicing of the Crédit Agricole Group) which aims to analyze the financial investments of Italian real estate funds.
“In general, we are seeing a renewal trend of real estate funds. On the one hand, some stand
going to maturity, requiring the realization of the properties and the distribution of liquidity to investors.
On the other hand, new funds are emerging which, however, are still unable to find investments that are consistent with
the regulatory and return-risk profile. The result is a presence of liquidity that can derive from
realised, by temporary difficulties in finding investments and by the need to maintain a buffer of
liquidity to deal with a possible non-compliance with contractual deadlines by the lessees",
comments Prof. Claudio Cacciamani of the Department of Economics and Business
of the University of Parma.
“In the current macroeconomic context, now defined as expansive, the real estate asset class represents
more and more an interesting investment opportunity, above all in the managerial and commercial areas
of big cities. We believe that with the push of the PIR it may further increase, given the recent
success of these instruments hitherto invested in more liquid asset classes. It is also not surprising decrease
of the levels of liquidity held by the fundsi, now representing a cost for managers given the negative rates that characterize this economic phase, and the scarce use of efficient tools such as bridge financing.” comments Giorgio Solcia, Managing Director of Caceis Bank, Italy Branch.
Management companies active in the real estate to which they belong took part in the eleventh survey
60 real estate funds, of which 19 listed, for total assets at 30 June 2017 of €7.700 million
about.
With regard to the composition of the asset allocation, if it is true that the law provides that the funds
real estate invest no less than two thirds of their total assets in real estate, real rights
real estate, shareholdings in real estate companies and shares in other real estate funds, including foreign ones, according to a
criterion of prevalence or exclusivity, the sample of real estate funds observed holds a percentage
higher than the minimum 67% (about 82%), against a financial share of about 10%. To these
two classes of investment side by side, in decreasing order of incidence: liquidity, other assets, i
credits, bank deposits and other assets.
