REAL ESTATE WITH VISION

By Caroline Kaltenreiner

Stable investment properties are essential for long-term financial planning. With a focus on location, quality and sustainability, Generali demonstrates vision in its real estate portfolio.

‘Cities and real estate markets are changing rapidly – driven by digitalisation, the climate crisis and new ways of living,’ explains Yalcin Bozdag, Head of Branch Austria at Generali Real Estate (GRE). ‘Our goal is to create spaces that meet the requirements of modern urban development with high-quality, sustainable properties in central locations. In this way, we are making an active contribution to shaping sustainable, urban living environments.’ As a real estate asset manager, Generali Real Estate (GRE) is responsible for managing and implementing the Generali Group’s real estate strategy. Based on an integrated business model, GRE covers the entire spectrum of asset, property and project management services. Assets under management amount to around €36 to €39 billion and include both historic buildings and modern properties. In Austria, GRE manages over 90 properties, including so-called ‘trophy properties’, i.e. particularly prestigious buildings in prime locations, and ‘core properties’ with stable rental income and low risk. The portfolio comprises around 45 per cent office space, 20 per cent retail and 35 per cent residential properties.

Premium properties make cities more liveable

Real estate has always been an important part of Generali’s long-term investment strategy. Not only does it offer stable returns, it also serves to secure liabilities. Particularly sought-after are central locations with high value stability and attractive returns. Premium properties such as these are less focused on quick profits and more on long-term value retention. They not only offer protection against inflation and reliable cash flow through rental income, but also deliver the equally important “soft” returns of making a positive contribution to the cityscape, preserving cultural heritage and, to a certain extent, assuming responsibility for our society.

Long-term value retention instead of quick profits

Generali does not focus primarily on acquiring new properties, but also on improving the quality of existing real estate. Current examples of this include the planned Generali Vienna quarter in the heart of Vienna and the city centre properties on Renngasse and Salzgries: historic buildings that shape the cityscape and are currently being renovated and modernised in line with environmental, social and governance (ESG) criteria to make them sustainable and future-proof. Generali Austria and GRE are working closely together on this: market analyses, renovations and letting activities are generally planned and managed jointly. Projections, regular reporting and ongoing coordination of opportunities and risks at property and portfolio level serve as the basis for joint decision-making.

ESG as a guiding principle

Sustainability is always the top priority. Generali’s real estate strategy is consistently aligned with environmental targets in accordance with CRREM (Carbon Risk Real Estate Monitor) and EU taxonomy. All properties in the portfolio are continuously optimised in line with ESG standards and geared towards sustainable operating strategies. The beautiful façades of our premium properties mean more to us than just an investment: they also represent our cultural identity and our commitment to responsibility.

Generali Real Estate S.p.A.
Austrian branch
Lugeck 1-2
1010 Vienna / Austria
T +43 1 5350101 76802