Pirelli Real Estate may seek a listing on either Euronext in Amsterdam or on the main market in London for the office funds Berenice and Tecla, Italian newspaper Milano Finanza reported on Thursday. Earlier this week, Pirelli and Morgan Stanley said they will launch a public offer for the two closed-end funds managed by Pirelli RE. The two funds will ultimately have EUR 1 bn of assets.

Pirelli Real Estate may seek a listing on either Euronext in Amsterdam or on the main market in London for the office funds Berenice and Tecla, Italian newspaper Milano Finanza reported on Thursday. Earlier this week, Pirelli and Morgan Stanley said they will launch a public offer for the two closed-end funds managed by Pirelli RE. The two funds will ultimately have EUR 1 bn of assets.

The partnership between Pirelli (49%) and Morgan Stanley (51%) will make the offer for the fund in an attempt to expand the two groups' office investment platform. The move would replicate what was done in the case of Spazio Investment industrial property fund, which were listed on London's main market last year. Milano Finanza said another possibility under consideration is that new partners would join the office platform but that it would not necessarily be listed.

Pirelli and Morgan Stanley are to offer EUR 590 a share for 568,999 shares in Tecla Fondo Uffici and EUR 540 a share for 570,000 shares of Berenice Fondo Uffici through their vehicle Gamma RE. The offer represents a premium of 11.6% and 14.1% respectively, for the average trading price of shares in the funds over the past 12 months.

Morgan Stanley is advising on the deal and Capitalia and Banca Caboto will act as joint book runners for the bid, which will start during the first half of June and will be concluded by mid-July, the company said in the statement. The buyers must gain a 51% stake in each of the funds for their bids to be successful.

Separately on Thursday, Wall Street Journal Polska reported that Pirelli Real Estate intends to buy 370 hectares of land in Warsaw to develop 70,000 apartments.