Pirelli Real Estate Opportunities has been awarded the management contract for 18 historical assets owned by the municipality of Turin in northern Italy. The hedge fund manager of Italy's leading real estate group has offered EUR 131 mln to become Turin's partner in the new Palazzo di Cittá fund to which the assets will be transferred. The fund will be managed by Pirelli RE Opportunities and be solely invested by institutional parties.
Pirelli Real Estate Opportunities has been awarded the management contract for 18 historical assets owned by the municipality of Turin in northern Italy. The hedge fund manager of Italy's leading real estate group has offered EUR 131 mln to become Turin's partner in the new Palazzo di Cittá fund to which the assets will be transferred. The fund will be managed by Pirelli RE Opportunities and be solely invested by institutional parties.
In a statement, the Turin authorities said that Pirelli was one of three bidders in the auction that was launched in June. Italy's Banca Nazionale del Lavoro, part of the BNP Paribas group, teamed up with Carlyle in a EUR 118 mln offer, while another Italian firm, Fabrica Immobiliare, offered some EUR 91 mln.
The buildings include Palazzo Villa, a city-centre monument, and Villa Moglia, an estate dating back to the 7th century. The portfolio provides a total of 47,000 m2 of city-centre assets, 26,000 m2 of industrial areas, 8,000 m2 of villas and 32,000 m2 of land.
The municipality will retain a stake of at least a 20% in the Palazzo di Cittá fund and will contribute a total of EUR 300 mln of assets to it in the future.
Pirelli & C. Real Estate Opportunities promotes and manages speculative closed-end property funds which are reserved for Italian and foreign institutional investors.
