Sorgente Sgr pursues an investment strategy founded on essential components which include, the search for stable and long-term yields, medium to long term risk levels, and which is anchored in the dynamics of the real economy.
It is precisely due to these requisites that the real estate fund represents the best instrument for investment for institutional entities and pension funds, which to date are our principal investors. The latter oblige us to act with a great moral sense of responsibility, since we are conscious that part of the profits yielded by our products will contribute to guarantee workers their pension. Today, our funds have been chosen by Pension Funds, Insurance Companies, Foundations, Banks and Professional Associations.
The products promoted by Sorgente Sgr guarantee transparency, linearity of the investment vehicles, fiscal efficiency and lastly oversight of the relevant Regulatory Authority in each particular market. Sorgente Group has always conceived its investment choices on the basis of a careful research and selection of buildings, on the geographic destination, designation of use, and the selection of unique and unrepeatable objects due to the certainty needed for the creation of a solid and concrete financial setting.
It is for this reason that the buildings we aim to include in our funds are the so-called “trophy buildings”, having an undisputed historic and architectural value, with an iconic stance in their city and location therein. These kinds of buildings are destined to have a value which constantly increases in time, whilst safeguarding the same during periods of crisis. Hence, thanks to our work, an investor, whether institutional or private, can have access to the ownership of prestigious buildings, having such an importance and economic stability which is uninfluenced by the fluctuations of the rest of the market.
With the aim of reducing the risks whilst guaranteeing an adequate performance, the funds of Sorgente Sgr use minimum financial leverage (50/60%) and focus on the conservation, requalification and restoration of the buildings intended for rent, office and retail use to high-standing tenants. This strategy allows us to count on a dual revenue stream deriving from both an increase in value of the suitably restored assets and the security of a long term rental income.
Further stability is guaranteed by the standing of the corporate organs, composed of a majority of members originating from relevant institutional realities, principal banking institutions and industrial groups having a track record of stability.
Next Five Years
The asset allocation will be focused in the next five years to achieve the following investment targets:
- geographical diversification and types of real estate assets in order to minimize risks and achieve the yield growth
- increase in the share of foreign investments (USA and the rest of Europe)
- investments in non-traditional sectors such as credits (performing and non-performing), infrastructure and renewable energy.