COIMA Headquarters

OVERVIEW

COIMA is a group that has been involved in sustainable real estate investment and development in Italy for over 40 years. In recent years we have developed and still manage 34 LEED-certified buildings, representing approximately 76% of our portfolio. This is in addition to 15 properties under development, 10 of which will also receive the WELL certification. One of our most significant projects is the co-investment, co-development and ongoing management of the Porta Nuova project in Milan, one of the most prestigious urban redevelopment plans to have taken shape in Europe. A frontrunner in terms of LEED certifications in Italy with Unicredit tower, we have also started the process of certifying Porta Nuova aiming to be the first LEED and WELL for a Community district in the world. Our portfolio also includes the first Italian WELL certified office building and the largest NZEB (nearly zero-energy building) tower. We are also among the first operators in Italy to adopt WiredScore certifications, ensuring our buildings’ communications and technology infrastructure are futureproofed.

Investment Principles & Strategy 

COIMA’s investment policy relies on the philosophy of long-term value creation based on fundamentals, together with a constant monitoring and risk management in order to optimise performances on a risk-adjusted basis.

The investment strategy is based on an integrated approach, with the analysis of various key elements, including:

· Economic and real estate cycle analysis: analysis of the relative value of the real estate, compared to the historic trend both at macro and micro level

· Gap analysis: analysis of existing market gaps and future trends to identify potential opportunities (co-working, residential units for rent, etc)

· Supply and demand analysis: analysis of the mismatch between demand and supply to estimate the imbalances of the market and ongoing trends, particularly on the leasing market

· Product analysis: analysis of tenants’ requirements in terms of key product features as they will shape future demand

· Micro location trends: analysis of the most recognised locations and of those that will gain importance in the future also in relation to infrastructure changes (high-speed trains, metro lines, tenants’ consolidations, new projects, etc).

COIMA constantly works at identifying and monitoring risks both during the underwriting phase and in the management phase once the acquisition is completed. Risk analysis is performed respecting all the aspects of the investment process through a combination of research and detailed asset level analysis. COIMA’s vertically integrated approach allows it to monitor the performances and management of risks across the entire value creation process.

· Our ESG objectives for the next few years follow the decarbonisation guidelines of the European Union. 100% of our new developments will be already aligned with the 2050 decarbonisation target of 2°C and will be both LEED and WELL certified. Furthermore, each new project will be subjected to ESG performance assessment through proprietary analytical metrics, identifying specific objectives and measurable ESG parameters through the calculation of a rating that will lead to verification of compliance with these objectives.

COIMA constantly works at identifying and monitoring risks both during the underwriting phase and in the management phase once the acquisition is completed. Risk analysis is performed respecting all the aspects of the investment process through a combination of research and detailed asset level analysis. COIMA’s vertically integrated approach allows it to monitor the performances and management of risks across the entire value creation process. COIMA has also integrated the assessment of the sustainability (ESG) factors within the investment process through the application of a proprietary tool, COIMA Charter, that allows to measure the ESG impact of the investments.

COIMA SGR, conforming to Art. 4 of Regulation (EU) 2019/2088, has decided to adopt the “comply” approach to the consideration of the adverse impacts of its investment decisions on ESG (Environment, Social, Governance) sustainability factors.

Sector Forecasts

Industrial: The industrial sector in Italy has been the most resilient asset class during COVID-19 and investors are maintaining theirs strong interest for the asset class.. The sentiment for 2021 is positive, driven by solid demand for logistics spaces and by competitive yields compared to major EU peers. Ongoing trends including technology- driven retail consumption, urbanisation and sustainability have been accelerated by the pandemic and impacted logistics demand particularly in terms of product type. Last mile assets become even more strategic to shorten delivery routes. COIMA is targeting to upgrade the obsolete stock to meet international requirements and standards and to unlock development opportunities at the right land cost basis.

Office: The rise of remote working will lead tenants to reconsider the characteristics of the office product in terms of services offered to enhance employees’ well-being and space requirements, with a progressive shift to larger common areas and less desks. Future demand will be driven by replacement of poor-quality spaces with Grade A products, which meet the highest standards in terms of sustainability and flexibility, with a major focus on qualified neighbourhoods within the cities. COIMA believes this represents a relevant opportunity for Italy, where most of the office stock is still obsolete and where the existing demand-supply imbalance will likely be exacerbated by the slowdown experienced for the new developments. Large public disposals and urban regenerations fostered by recovery funds make the Italian office pipeline unique compared to other European peers.

Take a look at the key findings of a survey that COIMA has performed between October and January 2021 with a pool of corporates having an office footprint in Italy, and in particular, Milan. The survey has allowed us to gather direct feedback from tenants on the likely medium-term outlook for the office product taking into consideration the disruption brought by the COVID-19 pandemic.

THE FUTURE OF OFFICES PART II - FEBRUARY 2021

THE FUTURE OF OFFICES - OCTOBER 2020

Residential: The COVID -19 crisis has negatively affected the number of residential transactions but had a little or no effect on property prices, which have remained almost stable in the main Italian cities. Moreover, the effects of the pandemic have been mainly concentrated on the segment of used properties located in non-central and poorly served areas. The Italian residential sector continues to present significant investment opportunities thanks to the structural demand-supply mismatch and the changed needs of end-users. In particular, COIMA believes that the private rented sector represents an opportunity to bridge the above-mentioned gap, offering attractive long-term growth potential on the back of social and demographic trends.

Retail: The consistent growth of e-commerce and changes in customers’ behaviour impacted the retail sector even before the pandemic, which forced retailers to review their business models to reflect the changing environment that requires a shift toward flexible omni-channel retail models and sustainable.

COIMA as landlord and developer is changing its approach as well, providing flexible retail spaces in term of size, connected to a technological layer and enhancing the shopping experience through entertainment offers.

Strategic Corporate Development

In May 2021, COIMA announced the establishment of COIMA Holding, fully owned by COIMA founders. COIMA Holding controls all the companies within the group: COIMA SGR, the investment and asset management company, COIMA REM, the development and property management company, COIMA HT, the newly-established company operating in the technological and digital field to support the process of urban regeneration and digital transformation of physical spaces, COIMA Image, active in space planning and interior design, and Residenze Porta Nuova, the agency dedicated to the residential sector.

Taking advantage of opportunities in a market under constant transformation and managing risks for investors and for the companies of the group, COIMA carried out an analysis which has led to the implementation of 2021-2023 three-year strategic plan. The Company’s strategy remains dedicated to the Italian real estate market, maintaining a balance between domestic and foreign investors, with a focus anchored to the tertiary sector integrated by mixed-use urban regeneration projects with a progressive diversification in sectors of high-growth such as residential and logistics.

COIMA constantly analyses main trends in consumer prospects in the real estate sector to the steps required for developing real estate products and services capable of responding to the changing needs of the market.

The Italian context is not an exception when it comes to these global trends. The population is ageing more quickly than in other countries and families are becoming smaller, focusing more attention on rental properties, and those featuring more services. Consumer demand is driven by both economic advantages and the dissemination of the models, which entail a shift from ownership of assets toward the enjoyment of services. COIMA intends to take advantage of the new opportunities and has launched a process towards creating new generation real estate products. COIMA’s three-year plan focuses on three primary goals: reduction of portfolio risk, reinforcing operational capacities and investing in long-term trends.

Performance Verification

COIMA’s investment strategy has integrated sustainability criteria and focused on creating a high-quality real estate portfolio, offering sustainable long-term returns. COIMA Roots is the company’s holistic approach, which aims to generate, measure, monitor and provide sustainable, economic and social performance through key indicators based upon ESG parameters.