Pirelli RE launches two new funds in Italy

Pirelli RE's SGR asset management unit has announced the launch of two new real estate funds, Anastasia and Monteverdi, with a combined market value of over EUR 400 mln. Pirelli RE said that the new launches, taking its total assets to some EUR 6.3 bn, 'consolidate its leadership in Italy's real estate fund market'.

Anastasia is a core office-focused fund dedicated to institutional investors with a term of 10 years, and an option to extend this period by up to five years if needed. The vehicle, which will be managed by Pirelli RE SGR and is targeting an IRR (Initial Rate of Return) of 9%, has an initial portfolio worth EUR 318 mln consisting of five properties mostly located in Milan and Rome. They include four existing assets currently 93%-leased and a further project scheduled to be completed by the end of 2010. The properties were bought by the fund for EUR 280.7 mln, representing a 21% discount to their Net Asset Value.

Anastasia was placed among major Italian and European investors in an operation arranged by Banca IMI, Mediobanca, Morgan Stanley and Unicredit, with Intesa Sanpaolo and Unicredit acting as the fund's financing banks.

Pirelli RE SGR has also placed Monteverdi, a value-added fund specialising in office, industrial and retail real estate. The vehicle has acquired a portfolio comprising eight properties mainly located in Turin and Perugia, as well as a 2.26% stake in the Armilla Fund, managed by Pirelli RE SGR. The Fund's overall market value is EUR 89 mln, with debt of EUR 27 mln. Monteverdi has a term of seven years, with an option to extend this to a maximum of 30 years. Pirelli RE will retain about 42% of the fund.