Fimit closes EUR 850m deal with Intesa San Paolo

Italian banking group Intesa San Paolo has received the green light from the Bank of Italy for the sale of its real estate portfolio for EUR 850 mln to the Omega real estate fund managed by Italian fund manager Fimit. The bank will realise net profits of EUR 79 mln from the disposal of the 285 real estate assets.

Earlier this year Intesa San Paolo transferred the properties to its real estate arm Immit, saying it planned to spin off the portfolio in an Initial Public Offering worth up to EUR 1.05 bn. But as a result of slack investor demand the company was forced in June to suspend the IPO. The Omega fund will be subscribed by institutional investors including Intesa Sanpaolo, Fondiaria Sai as well as pension funds Inarcassa and Enasarco.

Fimit is also reportedly in final talks with bank Unicredit to acquire 100 buildings worth around EUR 1 bn. According to financial paper Il Sole 24 Ore, Unicredit hopes to realise gross profits of EUR 600 mln from the sale of the assets to a fund dedicated to institutional investors and managed by Fimit. The portfolio includes Unicredit's headquarters in Milan's Piazza Cordusio. The fund will have a value of EUR 1 bn and is expected to run for 15 years.

Italian media reported that the sale is the first tranche of a larger property transaction including a further 200 buildings. The rest of the assets would be transferred in early 2009 and would bring the value of the fund to about EUR 1.8 bn.

The move by Intesa San Paolo and Unicredit follows closely on the heels of the spin-off by Banca Popolare of its real estate portfolio. The Italian bank, which transferred the 456 assets to the Eracle real estate fund, said in early December that the fund had been fully subscribed by Italian and international institutional investors. It raised around EUR 751 mln of equity. The fund will be managed by Generali Immobiliare Sgr, an Italian asset management firm specialising in property funds.