Corporate overview

Generali Real Estate is one of the world’s leading real estate asset managers, with around €31.6bn of assets under management as of 30 June 2020. It leverages on the expertise of more than 430 professionals, with operating units located in the main European cities through four macro areas (Southern Europe, Western Europe, Central Northern Europe and Central Eastern Europe).

The company’s integrated business model covers the full scope of asset management activities and the entire real estate value chain. GRE has recently launched a series of 10 cross-border investment vehicles, geographically diversified and specialised in terms of des- tination of use, allowing investors to build a ‘personalised’ portfolio. Strategies aim to create long-term value for investors with a core/ core+ profile by investing in assets characterized by good locations, high liquidity and strong underlying leasing dynamics.

By managing a portfolio comprising a unique mix of historical and modern properties, ranging from landmark buildings such as Procu-ratie Vecchie in Venice, to new architectural masterpieces defining the skyline of modern cities such as CityLife in Milan or Tour Saint Gobain in Paris, the company has developed best-in-class skills in the fields of technological innovation, sustainability and urban development.

Generali Real Estate is part of the Generali Group, one of the largest global insurance and asset management providers. Established in 1831, it is present in 50 countries, with a total premium income of more than €69.7bn in 2019, and with nearly 72,000 employees serving 61m customers.

Sector forecasts

INDUSTRIAL: Despite the spread of COVID -19 disease, logistics sector is expected to further consolidate its strength and resilience leveraging the shift in consumer demand and behaviour (ie, e-commerce). While other real estate sectors have been hit by the pandemic with different severity levels, due to their correlation with traditional demand factors, logistics has shown a strengthening path. Furthermore, thanks to consolidations of e-commerce, supply chain reconfiguration and omni-channel distribution trends, logistics is expected to surf market momentum in the medium to long run. At the same time, demand for last-mile and next-generation logistics will lead to further development projects across Europe.

Office: Despite the restrictive measures imposed by governments having pushed most companies to embrace smart-working policies, office properties still represent one of the irreplaceable work tools, especially considering the role they play in terms of human interactions necessary for most activities.

Prime ESG office assets located in prime spots of gateway cities, able to attract the most skilled workers, are expected to maintain both income and value stability over the long term. Moreover, the establishment of ‘flagship’ offices (limited in number but excellent in terms of features) also leveraged as a tool to promote/sponsor company culture/values coupled with demand for employees wellness/safety and sustainability awareness, will continue to shift tenants’ demands towards grade A assets.

Residential: Residential destination of use is resilient by definition with households needing a home to live in. As the pandemic continued, families spent most of their time in their homes. In the immediate future, there is no prospect of a significant impact on the ability to support the rent, considering personal savings and state aid to those individuals/ employees involved in the reduction of wages/incomes. In a post COVID - 19 world, households are re-assessing how to use the house. In this context, the possibility to live in a ‘sustainable’ home granting wellness (in terms of size/light/and ideally outdoor space) and accessibility will be even more appreciated in the future for tenants.

Retail: The closure of most physical shops has severely penalised many brands and it has further weakened the ones which were already struggling. Food and beverages, a sector that was emerging as a strong new trend for retail with a steady growth in recent years, has been critically impacted too. For most retailers, managing the turnover drop related to the slowdown in demand and at the same time maintaining enough cash for the recovery represent the most critical challenges.

Investment principles & strategy

Generali Real Estate manages Generali’s real estate portfolio worldwide and is responsible for the implementation of the group real estate strategy. The company carries out research-based portfolio optimisation and diversification across geographies, asset classes and risk profiles. Leveraging on this expertise, GRE has launched a series of European cross-border real estate funds specialised by investment strategy, geographically diversified and investing in high quality underlying assets. Such funds are managed both on behalf of Generali Group’s companies and of other long-term institutional investors.

The main appetite is for investing in core and core plus assets in the largest European cities, with a focus on prime office, logistics, residential and CRE debt and with indirect investments in Asia. Generali Real Estate uses a disciplined risk-return based investment and divestiture process to maintain a high quality portfolio.

Strategic corporate development

Coherently with Generali Group strategy, aimed at enlarging its external investor base, GRE is currently developing a cross-border investment programme aimed to offer to investors a broader real estate investment exposure and diversification in terms of asset classes, geographies, risk-reward profiles. In this context GRE SGR is currently managing 10 real estate investment funds, targeting extenal clients, institutional ones in particular, and in the next years will further enlarge its catalogue by managing additional vehicles.

Performance verification

Generali Real Estate periodically evaluates its performance against a number of benchmarks, according to best market practices. The performance of each fund is measured and analysed by independent third parties on a regular basis.

COMPLIANCE STATEMENT

This information is prepared by Generali Real Estate S.p.A. (GRE) and is for information purposes only. In preparing this presentation, GRE took all reasonable care and diligence to provide updated and correct information. Not with standing GRE believes the information contained herein to be reliable, no representation or warranty, expressed or implied, is made as to the accuracy or completeness there of. Certain information contained herein may represent forward-looking statements and/or statements that are based on information and belief. Such statements are subject to change for a variety of reasons. This presentation does not constitute an offer or solicitation to buy or to sell securities. Any reproduction hereof, total or partial, is prohibited without prior consent of GRE.