Strategy and business model

Generate attractive and sustainable returns monitoring and limiting risks

Our strategy is aimed at the creation, optimisation and active management of a high quality real estate portfolio characterised by potential for appreciation and able to generate increasing and sustainable cash flows. Particular attention is paid to the sustainability and energy performance of our buildings both in their current status and also taking into account potential refurbishments. Given current market conditions, we have opted to focus on the office segment in Milan, as it is the largest, most transparent and most liquid market in Italy

Manfredi Catella

Founder & CEO, COIMA RES

COIMA RES focuses primarily on Core and Core + assets and typically invests in Value-add assets in JV with third parties.

REAL ESTATE PORTFOLIO (AS OF DECEMBER 31ST, 2018) by investment strategy

Investment Strategy

Core and Core + commercial real estate with an attractive risk-return profile

Offices assets in Milan: the largest, most transparent and most liquid market in Italy

Off-market transactions leveraging our network and presence on the market

Prudent financial structure maintaining an LTV below 40%

Possibility of co-investment in Value-add projects in Joint Venture

Main features of the buildings we buy

High quality buildings, both in their current state and in a refurbishment scenario

Situated mainly in strategic areas which are well connected to the public transport network

High quality of tenants with preference for “investment grade” status

Combination of long-term leases for properties rented at market levels in order to support the cash flows of COIMA RES and short-term leases for properties rented below market in order to capture potential rental growth in the medium term (also on the back of refurbishment processes)

Particular attention to the sustainability of buildings, both in their current state and in a refurbishment scenario, and related certifications (LEED, WELL, Cradle to Cradle, Near Zero Emission Building, etc.)

Active asset management

Constant monitoring of tenants’ satisfaction

Renegotiation of lease agreements to increase their level and/or extend duration

Tenants’ rotation in order to capture market rental growth

Feasibility studies and implementation of improvement actions when needed

Repositioning and upgrading buildings to satisfy market demand

Evaluation of possible disposals of non-strategic assets and on an opportunistic basis

Business model

Buy

Acquisition of commercial real estate assets with medium to long term value creation potencial

Optimise

Active management of the real estate portfolio working with tenants, optimisin cash flow streams (including leasing and financing) and improving the quality of the assets through selected refurbishment plans

Hold

Retain in the portfolio the strategic assets for the medium to long term

Sell

Disposal of mature, non-core and non-strategic assets freeing up capital for new acquisition

Key Objectives

COIMA RES currently aims to concentrate its portfolio in Milan office segment which is the largest, most resilient and most transparent real estate segment in Italy

With this aim in mind, COIMA RES has completed the following transactions:

Acquisition of real estate assets in Milan (mainly for office use) for €511m (2016-2018)
Disposal of 42m worth of bank branches (2016-2019) and in particular the entire South of Italy exposure (2018)
Disposal of the Eurcenter office property in Rome for €90m (2018)
In addition, in order to further diversify its portfolio of assets and tenant base, COIMA RES has sold a 50% stake in the Vodafone complex to a Korean investor (2019)