Pirelli RE eyes foreign expansion

Pirelli & Co Real Estate said its foreign assets will increase in 2007 from 14% to 25% of the total assets under management. The company will focus on central-eastern Europe next year, consolidating its presence in Germany and Poland, and widening its business in Romania, Bulgaria and Croatia, Chief Financial Officer Gerardo Benuzzi said Friday during a conference call to present the company's full year 2006 results.

The Italian group is planning acquisitions totalling some EUR 4.3-5.0 bn next year, with the bulk concentrated in the residential and office segment. It will also launch a new fund, called Spazio Residential, to target new investment opportunities in Poland, where it has 300,000 m² under development through its Pirelli Pekao RE unit, and Germany. 'There is an unsatisfied demand for residential units in Poland, due to a growing population, and Pirelli will focus on developing in major Polish cities in order to double its portfolio in the country by the end of 2007,' said ceo Carlo Alessandro Puri Negri. In Germany, where Pirelli is active through Deutsche Grundvermogen (DGAG), the group will focus on large residential and office portfolios in major German cities.

Last year, Pirelli RE saw net income rise 10% to EUR 160 mln from EUR 145 mln a year earlier. The group aims to increase investment and assets under management from EUR 12.8 bn to EUR 15 bn in the coming twelve months. It is proposing a dividend of EUR 2.06 per share compared with EUR 1.90 in 2005.