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GIC backs Italian brown to green strategy

23rd November 2023

Singaporean sovereign fund GIC has anchored a new sustainable real estate fund, which will focus on retrofit and redevelopment.

Italian real estate investment manager COIMA SGR announced a first close for its Opportunity Fund III, with an initial €200 million ($218 million) committed by an Asian sovereign wealth fund, understood to be GIC, as anchor investor. 

The new vehicle will focus on decarbonising office and residential real estate across Italian cities, with a “brown to green” strategy and plans to raise €500 million by 2024, with potential to invest €1 billion with leverage. The target return rate (levered IRR) is 14%.

COIMA will particularly target central areas of Milan and Rome, where corporate demand for sustainable real estate is strong. The portfolio will be fully aligned with European taxonomy on decarbonisation, and all buildings will be LEED certified.

Separately, COIMA announced that its ESG City Impact Fund (COIMA Impact), which has so far has raised over €800m from Italian institutional investors and is set to reach €1bn in investment by year end, has also approved an increase in its target size from to €1bn to €2bn.

Manfredi Catella, founder and CEO of COIMA, said: “The first close of COF III and the expansion of our COIMA Impact Fund underline Italy’s continued importance as a strategic market for national and international capital focused on sustainable urban regeneration.”

(pictured above, Pirelli 35, a COIMA project in Milan)

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