Real estate fund manager Coima has launched its third opportunistic fund, with a target of raising €500 million by 2024 to decarbonise real estate across major Italian cities.
IPE Real Assets understands that Singaporean wealth fund GIC is Coima Opportunity Fund (COF) III’s cornerstone investor, having made an initial €200 million commitment to the fund at its first close.
Coima said the COF III is focused on building a portfolio of next-generation carbon-neutral real estate projects in the office and residential sector, particularly brown-to-green urban redevelopment and retrofit projects in central areas of Milan and Rome where corporate demand for high-quality sustainable real estate is strong.
The fund will last a decade and will primarily target international institutional investors, with a goal of raising €500 million in 2024. Through financial leveraging the fund will have an overall investment capacity of around double this amount, and a pipeline of projects worth more than €1 billion has already been identified. The fund targets a levered internal rate of return (IRR) of 14%, according to Coima.
Separately, ESG City Impact Fund (COIMA Impact Fund), Coima’s urban regeneration environmental, social and governance fund has so far raised over €800m from Italian institutional investors and is set to reach its €1 billion in investment by year-end, and has now increased its target size from €1 billion to €2 billion, the manager said.
Coima is seeking to raise over €3 billion in investment over 2024-2026 through sustainable investment vehicles classified under Article 8 or Article 9 of the European Union’s Sustainable Finance Disclosure Regulation.
Source: realassets.ipe.com on the 22nd of November