Enel to dispose of EUR 190m of property through new fund

The board of Italian power giant Enel has approved a plan to create a new fund endowed with EUR 190 mln of the company's non-core real estate assets in Italy.

The endowment will consist of approximately 3,000 small assets of moderate average value (residential and converted industrial properties, agricultural land and de-commissioned stations) spread across more than 1,700 small-to-medium-sized municipalities located throughout Italy. In general, the properties yield no income or very low rents.

Enel has mandated Fondi Immobili Italiani (Fimit) to organise and manage the fund. The appointment is expected to take effect at the end of July following approval of the plan by the boards of the Enel subsidiaries who are contributing the properties.

Enel said the assets destined for the fund represent the residual real estate held by Enel following major disposals in recent years.

Once the real estate fund has been set up, it will be endowed with Enel's real estate assets in exchange for units in the fund which Enel may subsequently place, at its sole discretion, with qualified institutional investors of its choice.

Fimit will immediately commence valuing and disposing of the real estate assets in line with plans agreed with Enel, which will receive the resulting proceeds in proportion to the fund units it holds.