Italian property giant Pirelli Real Estate said on Friday it has entered into an agreement with Milan-based asset manager First Atlantic RE to transfer the management of the office fund Berenice Fondo Uffici.
Italian property giant Pirelli Real Estate said on Friday it has entered into an agreement with Milan-based asset manager First Atlantic RE to transfer the management of the office fund Berenice Fondo Uffici.
Pirelli RE said that the management of Berenice 'will be transferred soon and with the utmost transparency' to ensure continuity in the fund's operation. The change of fund manager is pending approval by the Bank of Italy and the fund's unit holders, which will meet on March 17. US investment bank Goldman Sachs' investment vehicle Zwinger Opco, which owns over 90% of Berenice after launching an offer in July, has already agreed on the replacement of the fund's management.
Zwinger has also agreed to pay EUR 17 mln to Pirelli RE in exchange for a waiver from the company of its right to charge the fund. The investment vehicle is also acquiring the remaining 5% stake, or 30,003 units in the fund owned by Pirelli. The price per unit has been set at EUR 725 per unit, less dividends and capital repayments since June 2007, bringing the total price to EUR 19.6 mln. Pirelli added that it is realising a capital gain of EUR 5.6 mln through the sale.
In July, Goldman Sachs outbid rival Merrill Lynch in a bidding war for the Italian real estate fund. Goldman offered EUR 913 for each unit of the fund, up EUR 142 from its previous bid of EUR 771 per unit. It was Pirelli RE who set off the bidding war for the fund, offering some EUR 540 per unit for Berenice in June. Berenice owns assets valued at more than EUR 800 mln.
After this transaction, Pirelli RE will have eight ordinary closed-end real estate funds under management, with assets worth about EUR 3.7 bn.
