Good in Europe and in the world, record breaking in Italy, particularly in terms of volumes collected. The real estate fund sector is set to confirm for 2006 the positive trend that already emerged in the summer months. This is due, explains the latest report on real estate funds in Italy and abroad by Scenari Immobiliare, to the liveliness of the internal market, characterized by the launch of ever new retail and institutional funds and the entry of new speculative and traditional asset management companies, while others are awaiting the approval of Bankitalia. The good moment is found for Italy above all in the volumes of net collections: 1,839 million euros at the end of the year, 200 more than in 2005. The forecasts 2007 speaks of a further increase in collection (+19.6%). Assets under management should reach 21 billion euros in December 2006 and rise to 25 billion at the end of 2007. The report highlights the growth in size of the real estate assets managed (from 143 properties in 2003 to 1,936 this year) but also the great, still unexpressed potential of the sector in terms of financial leverage, i.e. the possibility of borrowing up to 60% of the value of the properties to expand the portfolio. To date, the potential indebtedness exceeds nine billion euros. On the retail funds front, the report examined 23 products as of 30 June 2006. On that date, the direct real estate assets of the products aimed at private savers stood at 6.5 billion euros (out of the 14.7 billion of the total). Five of these are contribution-based versus 18 collection-based. In general, the funds invest mainly in Lombardy and Lazio, with a clear prevalence of the office sector (71% of the assets are concentrated in this sector). On the yield front, the performance trend in the office sector, by far the most interesting, records a stable relationship between the dividends paid and the value of the shares: 5.77% in June 2005, 5.49% last June. The internal rate of return (Irr, compound annual return on the investment) was also stable, rising from 6.07 to 6.16 percent in the period. In comparison, again as of 30 June 2006, the yield on a 10-year BTP stood at 3.89 percent. For 2007, the forecasts speak of a capitalization of managed real estate savings in the world exceeding one thousand billion euros.
source: IL SOLE 24 ORE
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