Generali Real Estate’s portfolio strategy

Investments in the existing portfolio contribute to its sustainable development

Digitalisation, the climate crisis and challenging markets require a more comprehensive view of the resilience, competitiveness and future viability of the real estate portfolio. In addition to the ongoing monitoring of local markets and the exploitation of cyclical market opportunities, Generali Real Estate’s portfolio strategy is increasingly focused on the resource-efficient optimisation of building quality, the improvement of energy efficiency and the reduction of CO₂ emissions. 

Against the backdrop of changing ways of working and living, as well as rising demands for quality, flexibility and sustainability, the revitalisation of existing buildings takes on particular significance. Today, tenants expect high-quality spaces, modern technical infrastructure and sustainable building standards that both meet their requirements and align with ESG objectives.

Despite the risk-adjusted positioning of investment properties in prime city-centre locations, technological, economic and social change necessitates a long-term perspective for each individual asset. The aim is to remain competitive in the future and to generate an appropriate and sustainable return. To this end, all existing properties undergo a rolling portfolio analysis, in which attributes such as location and property quality, the letting situation, and current trends and developments in the property’s environment are examined in detail, to name just a few of the criteria in the context of ongoing operational and strategic portfolio optimisation.

“Beyond cost-conscious management, the sustainable development of our portfolios is therefore a central aspect of our asset management strategy. As a long-term portfolio holder, we aim to safeguard the value of the properties and gradually increase it through targeted investments,” says Yalcin Bozdag, Head of Branch Austria. 

Given our portfolio structure, which includes a large number of historic, listed trophy and core assets, this presents structural and regulatory challenges. Here, environmental responsibility and economic efficiency are closely intertwined. The focus is on increased use of renewable energy, measures to modernise building services and improve building envelopes, as well as measures for the efficient management of energy consumption.

“We create attractive living and working spaces and transition modernised properties into new life cycles with ESG compliance, high flexibility of use and contemporary facilities for long-term competitiveness. This simultaneously strengthens tenant loyalty and increases tenant satisfaction,” Yalcin Bozdag continues.

The consistent implementation of this strategy is reflected in a positive letting rate as well as sustainable income and value growth. This is because modernised buildings generally generate higher rental income when successfully positioned in the market, thereby contributing to the overall success of the property portfolio.

Conclusion: continuous investment in the portfolio creates long-term added value for tenants and investors, whilst also making an active contribution to the environment and the creation of sustainable urban living environments.