Italian property firm Pirelli Real Estate said it has formed a joint venture with Italian bank Intesa Sanpaolo to incorporate its European facilities and project management services. Pirelli will hold a controlling stake in the joint venture. Following the partnership agreement, Intesa Sanpaolo has bought from Pirelli RE 49% of Pirelli RE Facility Management Netherlands, which will change its name to Pirelli RE Integrated Facility Management. At the same time, the Italian lender has taken over from Pirelli RE 100% of Pirelli RE Facility Management, one of the leading companies in Italy with operations in Poland, through Ingest Polska.

Italian property firm Pirelli Real Estate said it has formed a joint venture with Italian bank Intesa Sanpaolo to incorporate its European facilities and project management services. Pirelli will hold a controlling stake in the joint venture. Following the partnership agreement, Intesa Sanpaolo has bought from Pirelli RE 49% of Pirelli RE Facility Management Netherlands, which will change its name to Pirelli RE Integrated Facility Management. At the same time, the Italian lender has taken over from Pirelli RE 100% of Pirelli RE Facility Management, one of the leading companies in Italy with operations in Poland, through Ingest Polska.

The new joint venture will acquire firms in countries where Pirelli is already active, as well as in Central and Eastern Europe, the company said. Pirelli RE said it expects the joint venture to generate revenues of EUR 430 mln and pre-tax profit of EUR 26 mln this year, with revenues increasing to EUR 1 bn and profit to EUR 60 mln in the medium term.

Pirelli RE added that it had also lifted its syndicated line of credit to EUR 750 mln from EUR 450 mln, saying this was to strengthen its financial structure. HSBC, Morgan Stanley and Société Générale have acted as the arranger banks. The operation involved a total of 19 banks, of which 12 international and 7 Italian.