Coima launches ESG fund of urban regeneration, with a target over €1 bln

Coima sgr, a company specializing in the management of real estate investment funds on behalf of institutional investors, launched Coima ESG City Impact Fund, the first Italian closed-end investment fund with measurable ESG (Environmental, Social & Governance) impact objectives. 

Building on the experience gained in the development of the Porta Nuova area in Milan, the fund will invest in sustainable regeneration of the territory at a national level. The official placement follows a first phase of funding already completed for about $450.8 million (€400 million) with Cassa Forense, Cassa Nazionale Dottori Commercialisti, and Inarcassa as cornerstone investors who have identified the initiative as strategic for channeling investments into the real economy of the country. 

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The rate of return targeted by the fund is more than %10

The fund’s investment potential is therefore already in excess of $1.7 billion (€1.5 billion), with an already identified “pipeline” of over $1.13 billion (€1 billion). Through progressive funding and subsequent capital increases during the fund’s life (20 years), Coima ESG City Impact Fund aims to achieve funding of over $1.13 billion (€1 billion) with the capacity to develop over $4.5 billion (€4 billion) investments with an ESG impact on the territory and the real economy. 

From a financial point of view, the fund targets a rate of return (Irr) of over 10% in the development phase and a stabilized dividend of over 5% in the income phase. The fund is structured with a scalable approach through an open investment architecture, i.e. with the possibility to expand its economic, environmental and social impact also through co-investments, partnerships and contributions in addition to bank and supranational bodies’ leverage.

Examples of open architecture development include the Coima ESG City Impact Fund, Covivio, and Prada for participation in the sale of the Porta Romana airport in Milan. The fund’s investments will be mainly focused on urban regeneration and reuse of buildings that contribute to updating the national physical infrastructure with respect to the evolution of demand and technological innovations that will enable new social and physical models. 

Tourism and housing as priority sectors

The priority areas identified are those of housing and tourism, in particular in the context of neighborhood-scale urban regeneration development that can contribute to the creation of a wider supply chain. At the basis of the initiative there is the idea that the pandemic and economic crisis highlights the need for an approach capable of generating a more widespread and sustainable well-being, focusing on the Italian territory. 

The launch of the fund “represents a commitment at the service of Italy and a contribution to developing real economy projects in partnership with the best institutions, universities and research centers, entrepreneurs and companies in both the private and public sectors, and significant returns in terms of sustainability,” highlighted Manfredi Catella, founder, and CEO of Coima. According to him, “the Italy of a thousand bell towers can represent a model of sustainable territorial development and an alternative to concentration in megacities. The presentation of the fund was also attended by the mayor of Milan, Giuseppe Sala, who said he was ready to “actively listen” to the vision of the real estate operators and “very positive” about the future of the city in the long term, but is “very concerned” about the situation in the next two years.

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(Featured image by Free-Photos via Pixabay)

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