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Italy's Generali places 30% of property fund

Assicurazioni Generali has placed more than 30% of Italy's largest private property fund with domestic investors for €218 million ($346.4 million), the Italian insurer said.

The Scarlatti real estate fund was set up in December 2006 with property assets worth €1.4 billion, consisting mainly of offices in Milan and Rome, it said in a statement.

“The unit price was based on NAV (net asset value) at 31 March 2008, net of income for the period,” Generali said.

With a residual life period of 8.5 years, the fund is managed by Generali Immobiliare Italia SGR, a unit of the insurer's asset management arm Generali Investments SpA.

Sources close to the matter told Reuters on Monday Generali Immobiliare Italia SGR was competing with a number of other Italian companies to manage a property fund UniCredit was considering launching. One of the sources said the Italian bank's fund would be worth between €1.6 billion and €1.8 billion. A press report had previously indicated the value of the fund at around €2 billion. (Reuters)