Gamma RE, the joint venture between Pirelli RE and Morgan Stanley, has reached a deal with Goldman Sachs' Whitehall funds to end a bidding war between the companies to take control of two Italian listed office funds, according to sources close to the situation. Under the unofficial agreement, Gamma will not hike its offer for the Berenice fund, giving full scope to the opposing bid made by Zwinger, the special purpose vehicle used by Goldman Sachs and Caltagirone's UGI to launch the offer. In exchange, Pirelli RE will go forward with its offer for the other fund, Tecla.
Gamma RE, the joint venture between Pirelli RE and Morgan Stanley, has reached a deal with Goldman Sachs' Whitehall funds to end a bidding war between the companies to take control of two Italian listed office funds, according to sources close to the situation. Under the unofficial agreement, Gamma will not hike its offer for the Berenice fund, giving full scope to the opposing bid made by Zwinger, the special purpose vehicle used by Goldman Sachs and Caltagirone's UGI to launch the offer. In exchange, Pirelli RE will go forward with its offer for the other fund, Tecla.
Whitehall offered EUR 678 for each Tecla unit and EUR 725 for each Berenice unit, which compares to Pirelli RE's offer of EUR 690 for Tecla and EUR 685 for Berenice. The bids run respectively until 5 and 20 July. The two business partners Goldman Sachs and UGI said they are planning to create a 'strategic partnership aimed at creating a single investment platform, whose objective is to invest on the Italian real estate market through closed-end real estate funds'.
On the other hand, Pirelli RE, manager of both funds, is reportedly planning to de-list the fund from the Milan Stock Exchange and transfer the properties, together with other non-listed assets, to a new company that could seek a listing in Amsterdam.
