Italy's Pirelli RE has said it will focus on consolidating its German business this year. It will also seek more investment opportunities in Bulgaria and Romania, while targeting further developments in Poland. The Italian real estate giant plans to increase its EUR 15 bn in assets under management in Germany, Italy, Poland, Bulgaria and Romania. The company also said it is seeking to lower the average stake it holds in joint ventures across Europe to about 20% in the long run, from 37% at present.
Italy's Pirelli RE has said it will focus on consolidating its German business this year. It will also seek more investment opportunities in Bulgaria and Romania, while targeting further developments in Poland. The Italian real estate giant plans to increase its EUR 15 bn in assets under management in Germany, Italy, Poland, Bulgaria and Romania. The company also said it is seeking to lower the average stake it holds in joint ventures across Europe to about 20% in the long run, from 37% at present.
In Germany, Pirelli Real Estate will focus on consolidating its retail and residential portfolio under management which is now worth some EUR 3.4 bn following last year's aggressive acquisition drive in the country. The company said it will seek to create more value from the DGAG's EUR 275 mln commercial portfolio through active management, while also looking for new acquisitions in the market. CEO Carlo Puri Negri said on Thursday the company has raised its share of European assets to 29% of total assets last year, from 15% a year before.
In Italy's property market, Pirelli intends to create a long-term core office platform 'with a relevant size'. CEO Puri Negri said the company will then consider the listing of parts of this enlarged office platform. Pirelli also said it expects a flat operating profit in 2008 after the company posted a 10% increase in 2006. 'Based on the current economic and financial conditions, the company expects EBIT including net income from investments for 2008 to be in line with the prior year,' Pirelli said. The firm's consolidated net profit dropped 5% to EUR 151 mln last year.
Pirelli said on Thursday it is continuing its negotiations with the German department store owner Arcandor’s Karstadt Quelle to buy 49% of its EUR 4.7 bn Highstreet portfolio, but did not give further details on the deal. The company announced in December it had signed a letter of intent with Arcandor for the sale of its EUR 4.7 bn portfolio, noting that the exclusivity period run until 1 February.
