Italy's Prelios appoints new CEO

Struggling Italian real estate group Prelio has named Sergio Iasi as new Chief Executive Officer following the resignation of Paolo Bottelli in mid-November. Prelios also promoted Enrico Parazzini to deputy chairman, with a mandate to follow the development of the operation with Feidos aimed at the group's financial reorganization and business relaunch.

Following a board meeting held on Monday, the Milan-listed group also confirmed its new three-year plan revolving around a re-focus on property management and services and the gradual sale of co-investment assets. This will be combined with efforts to continue to reduce the group's cost base.

Prelios announced in mid-November that it had reached agreement with Massimo Caputi's investment firm Feidos on a capital injection and restructuring of debt. If backed by Prelios' current shareholders and creditor banks, the agreement with Feidos will lead to a capital increase of EUR 185 mln. At least EUR 100 mln would be in cash, with the remainder subscribed through a possible conversion of debt.

Current Prelios stakeholders will be able to subscribe to an overall share of EUR 25 mln of the increase, with Feidos signing up for EUR 20 mln. The shareholders are investment company Camfin, insurer Generali, Intesa Sanpaolo bank and oil tycoon Massimo Moratti. They support the recapitalisation plan.

Prelios' debt pile of EUR 561 mln would be reduced to about EUR 250 mln, with the rest converted into equity or quasi-equity instruments.

Feidos and Prelios have agreed to extend the exclusivity of their talks to 21 December in order to reach a final agreement.

US asset manager Fortress had proposed a rival rescue plan in recent months but Prelios opted to work with Feidos.