COIMA is a leading platform for the investment, development and management of real estate assets on behalf of institutional inves- tors. COIMA SGR, an investment and asset management company, manages 26 real estate investment funds with over €6bn in investments and counts in its portfolio over 150 properties, including 40 LEED certified properties. COIMA Srl, a development and property management company, in over 40 years has developed and managed real estate properties totaling over 5m sqm. Among the most important projects in which the platform has co-invested, co-developed and still manages today is the Porta Nuova project in Milan, one of the most prestigious urban requalification plans in Europe.
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 riskadjusted 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.
Industrial: The industrial sector in Italy has been the most resilient asset class in the first semester of 2020 despite the lockdown and all the uncertainties connected to the COVID -19 pandemic. The sentiment for the last months of 2020 remains positive. 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 as a response to COVID-19 will likely play a negative effect on future demand for office products, as tenants will likely reconsider their spaces needs. On the other side, the reduction should be partially offset by the increase in the space requirements to comply with sanitary measures. 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. 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.
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 COVID -19 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 fulfillment.
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
Taking advantage of opportunities in a market under constant transformation and managing risks for investors and for the companies of the platform: through this approach, in 2018 COIMA carried out a close analysis which has led to the three-year plan 2019–21.
This journey started with an analysis of the main trends in consumer prospects in the real estate sector and which considered 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 ‘sharing ’ 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.
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.
The Company has outsourced the Compliance function to Deloitte. The Italian regulatory framework does request a mandatory compliance function within the organizational structure: COIMA SGR has designated a Compliance Officer in full outsourcing, who has specific responsibilities for overall the regulatory matters, giving several approvals for the main decisions to be taken, for example the allocation procedure, the conflict of interest, etc.. The Compliance Officer has also the responsibility of the anti-money laundering activity and is a member of the Conflict of Interest Committee. The Compliance team is composed by four resources.