The Fund’s Characteristics and Purpose
CDPI Sgr, by decision of the Board of Directors of October 16, 2009, established the first fund managed by the company: a closed-end real estate investment fund, reserved to institutional investors, called “Fondo Investimenti per l’Abitare” - FIA (i.e., Housing Investment Fund), whose rules were approved by the Bank of Italy by decision no. 167 of March 11, 2010.
The Fund invests in the social housing sector in order to increase the supply of social housing units in Italy, to be let at affordable rents and for sale at subsidized prices, and to support and enhance the relevant policies of the national and local government.
The FIA operates throughout Italy, investing in local initiatives to build homes at affordable costs, intended for families who are unable to meet their housing needs on the marketplace, but whose income does not entitle them to be assigned Public Residential Housing (the so-called “grey class”).
With five closing, from July 2010 to March 2012, the FIA’s assets amount to 2.028 billion euro, including one billion subscribed by Cassa Depositi e Prestiti S.p.A., 140 million by the Ministry of Infrastructure and Transport and 888 million by banking and insurance groups and private pension funds.
The FIA invests its assets primarily in shares of closed-end real estate funds operating at local level and run by other asset management companies, through stakes, investments, equity interests up to a maximum of 40%. This limit is intended to attract resources from third parties investors and at the same time to enable the FIA to maintain a significant presence in individual programmes.
Primary Features of the Fondo Investimenti per l’Abitare
What it is
A closed-end real estate fund, managed by CDP Investimenti Sgr S.p.A., reserved to institutional investors.
Investment in the Private Social Housing sector in order to contribute to the increase in the supply of social housing units, in coordination with public national and local policies in the same sector.
- Target amount: 2 billion euro
- 35-year term, plus possible extension for a maximum of 3 years
- Exclusive investment in real estate assets
- Participation in real estate funds (or investment vehicles) up to 40% of the assets of each local initiative
CDP S.p.A., Italian Ministry of Infrastructure and Transport and other private, institutional investors, such as banking and insurance groups and privatised professional pension and welfare funds
Area of operation
Nationwide, in locally promoted initiatives
Approximately 3% plus inflation, generated by an income flow from the letting of properties and from revaluation at term, at the time of their sale.