Pirelli Re acquires 53% stake in Credit Servicing

Real estate heavyweight Pirelli RE has become Credit Servicing's majority shareholder after acquiring a 53% stake in the company, which is owned by Morgan Stanley Real Estate Funds. The price for the acquisition was not disclosed.

Credit Servicing is specialised in the management of non performing loans (NPL), thus the acquisition 'is consistent with Pirelli RE business model, which envisages full ownership of companies providing asset management', the Italian group has announced in a press release.

Founded at the beginning of 2006, Credit Servicing has seven offices in Italy, distributed in Milan, Florence, Rome, Naples, Bari, Palermo and Catania. The company has NPL under management of around EUR 6.9 bn in terms of gross book value, which compares to an approximately EUR 1.8 bn at net book value.

Pirelli RE group said 'it has already identified several opportunities for investment in NPLs, amounting to approximately EUR 10 bn at gross book value for 2007'. On December 19, Pirelli RE received the approval for the acquisition of Deutsche Grundvermogen (DGAG) from Germany's Antitrust Authority. The latest is a property company headquartered in Hamburg and Kiel. The closing of the transaction is scheduled on January 10.

Pirelli RE, part of the listed group Pirelli & C., is a management company with three operational centres in Milan, Rome and Naples. The company recently opened offices in Berlin and Warsaw, as part of its expansion plan into Central-Eastern Europe.