QIA backs €300m Italian core fund with asset contribution

The Middle Eastern sovereign wealth fund will contribute 96 real estate properties in exchange for shares in COIMA SGR's real estate investment company, which is being listed on the Italian stock exchange.

Sovereign wealth fund, the Qatar Investment Authority (QIA), is contributing assets after the launch of a real estate investment company which COIMA SGR is listing on the Italian Stock Exchange. COIMA SGR is the former Italian platform of Houston-based developer-cum-fund manager Hines.

COIMA SGR is hoping to raise €300 million through the listing for the company that will invest in income-producing properties in Italy. The public offering will commence on today and is expected to end on April 1, 2016.

QIA will then contribute 96 real estate properties, mainly used as bank branches leased to the Deutsche Bank group, in exchange for 14.45 million shares in the company, valued at €144.5 million.

The Milan-based firm intends to use the net proceeds from the listing to strengthen its asset and financial structure, support growth and development targets, and purchase office, commercial, logistics assets such as the Vodafone Village properties in Milan.

The former country head of Hines in Italy, Manfredi Catella, spun the business out of Hines in September and renamed it COIMA SGR.

Currently, COIMA SGR manages 15 real estate investment funds, with investments valued at more than €5 billion.