What is it?
The reserved Italian real estate AIF established in closed form named "Euregio+ Turismo" and managed by Euregio Plus SGR S.p.A. is an Italian mutual investment fund falling within the scope of Directive 2011/61/EU of a closed, reserved type (reserved Italian AIF) as defined by Article 1(1)(m-quater) of Italian Legislative Decree no. 58 of 24 February 1998 (the "Consolidated Law on Finance" or "TUF").
The Fund promotes environmental or social characteristics – or a combination thereof – within the meaning of Article 8 of Regulation (EU) 2019/2088 and its investment decisions incorporate the assessment of sustainability risk, understood as "environmental, social, or governance event or condition that, if it occurs, could cause an actual or a potential material negative impact on the value of the investment".
Consistent with the competitive factors of the tourism sector in the Trentino-South Tyrol/Südtirol region, the Fund aims to improve the quality level of the region's hotel services in order to help close the "quality gap" with competing Alpine areas. The purpose of the Fund is the collective investment of capital in real estate, property rights and/or equity investments in real estate companies, as well as the professional management and development of the Fund itself, with the prevailing aim of periodically distributing the net operating result generated by the return on investments, safeguarding the value of the Fund's assets over time. The objective is pursued through a consistent portfolio management in terms of time, favouring the generational transition in the regional tourist hospitality system in order to avoid a depletion of supply capacity due to the governance crisis. The Fund's investments are made in real estate, property rights, real estate companies and hotel facilities mainly located in the Trentino South Tyrol / Südtirol region. However, investments in other EU territories are also permitted up to a maximum value of 30% of the total asset value.
In accordance with the limits and conditions envisaged by the regulations in force from time to time, the Fund's assets are invested for a share of not less than 2/3 (two thirds) of its total asset value in real estate assets, property rights - including those deriving from transferable real estate lease-to-own contracts and from concessions - and equity investments in real estate companies consistent with the Fund's purpose. The Fund may also invest in other publicly and privately owned real estate assets, including in leases from public administrations, redevelopment concessions and other types that are in any case complementary and functional - including in terms of the sustainability of the financial and income flows - to the achievement of the Fund's purpose.
When selecting and assessing investment opportunities, the AMC also considers the ESG ("E" environmental, "S" social, "G" governance) risk of each asset under assessment, using an ESG score or rating based on a method that takes into account the impact of planned reconversion, redevelopment and recovery works where relevant and technically estimable. In order to limit the ESG risk of its investments, the AMC sets a limit in terms of such ESG score or rating as a minimum requirement for the approval of each investment transaction. This method, developed in-house, can draw on the support of third parties for the collection and analysis of the data being assessed.
Responsible investment
The fund promotes environmental or social characteristics or a combination thereof, but sustainable investment is not its objective.
In fact the decision-making process underlying the selection and assessment of the Fund's investments requires the AMC not only to consider information of an economic and financial nature, but also the environmental, social and governance aspects of each asset being evaluated in order to minimise exposure to those whose ESG risk profile is not compatible with the minimum ESG Rating considered acceptable by the AMC at the time of the evaluation of the investment. During the process of assessing and selecting its real estate investments, the AMC integrates ESG factors through a combination of exclusion, redevelopment and engagement strategies as governed by the real estate investment and divestment procedure.
When selecting and evaluating real estate investment opportunities, the AMC is committed to excluding Lessees/Managers/Sellers and Buyers engaged in the production or sale of products related to controversial sectors (such as gambling, pornographic material, etc.) and illegal economic activities.
The redevelopment strategy prioritises investments in properties having plans for reconversion, redevelopment and asset recovery works, with the aim of improving their energy performance, reducing energy and water consumption and, where possible, obtaining Green certifications and/or properties that have already been designed with specific environmental criteria and standards in mind.
The AMC also promotes the improvement of the ESG profile of the properties it invests in through an engagement strategy aimed at defining an action plan to be implemented by the Lessee/Manager of each property, and constant monitoring of the progress achieved.
For more information on how the product promotes environmental and social characteristics, see the Disclosure pursuant to Article 24 of Regulation (EU) 2022/1288.
Type of investor
The purchase, for any reason, of Units of the Euregio+ Tourism Fund is reserved to Professional Investors and, subject to acceptance by the SGR, investors who are neither Professional Investors nor natural persons that, pursuant to art. 14, para. 2 of Ministerial Decree no. 30 of 5 March 2015, request the SGR to subscribe or purchase Units for a total not less than that set out by the applicable legislation at the time in question.
For indicative purposes, typical investors are banks; insurance companies; guarantee consortia; pension funds; social security funds; large companies that at the individual company level meet at least two of the following size criteria: balance sheet total equal to or greater than €10 million; net turnover equal to or greater than €20 million; own funds equal to or greater than €2 million, as well as other institutional investors.
Interested tour operators
The Fund is looking for tourist operators in the region who are interested in developing their structure qualitatively and quantitatively, being able to count on a solid partner who is attentive to management. The Fund also works in synergy with local banks with the aim of fostering the organisation of viable initiatives through flexible instruments consistent with operators' demands.