An Optimization Model for Supporting the Property Asset Allocation Decision-Making Process

The establishment of real estate funds has made it possible to attract greater local and foreign capital in the context of the enhancement and reuse of the Italian public real estate assets. The process of optimal allocation of the financial resources available in a real estate portfolio, however, is often opaque and linked to multiple factors. The aim of this research is to define an asset allocation model capable of supporting the decision-making processes of public and private investors in the context of the creation of optimized property portfolios. By adopting the logic and principles of goal programming, the model is able to identify the best combination of properties in the portfolio by optimally managing the available financial resources of a generic institutional investor. The ability of the proposed model to be flexible and implementable in any geographical context constitutes one of the main advantages for public and private investors.