2019 update report presentation: "Real estate funds in Italy and abroad"

Nov 20 2019

"The managed investment segment in the real estate sector has shown growth also this year, primarily due to the growing interest shown by foreign institutional investors". This was the opening statement made by Alessandro Busci, Fund Management Director of Prelios SGR asset management services, during the presentation of the report: "Real estate funds in Italy and abroad" prepared by Scenari Immobiliari and presented in Rome on November 20.

According to the report, the real estate fund panorama in Italy counts 480 operating vehicles, with plans to reach 500 in 2020, and real estate assets worth EUR 77 billion. Projections, based on half-year data and  manager prognosis, predict that NAV will reach EUR 68.5 billion at the end of the year, with an increase of 12.3 percent on the previous year, while forecasts for 2020 indicate an increase of more than ten percent in NAV. Global asset allocation is substantially stable. A slight increase was reported in residential and logistics, while commercial office space was stable, and retail was down. The outlook for 2020, based on the information collected from the SGRs, is positive and in line with the previous year. Real estate assets will exceed EUR 80 billion, meaning the 2010 results have doubled.

For Alessandro Busci, "The real estate asset management market has further room for growth, due to a potential demand from retail investments, whose interest could be adequately met through the introduction of new investment instruments, such as the European Long-Term Investment Funds. These instruments will allow greater investment liquidity on the one hand and, on the other, the adoption of ESG (Environmental and Social Governance) standards that guarantee maximum transparency and focus on sustainability”.