Prelios sells 13.6% of Cloe fund to GIC

The Government of Singapore Investment Corporation (GIC) has acquired a 13.6% stake in the Cloe closed-end real estate fund managed by Prelios at a 20% discount to the fund's net asset value.

The transaction improves Prelios' net financial position by nearly EUR 27 mln, the company said.

Launched in 2004, Cloe has a core profile and owns a portfolio of 11 properties valued at EUR 550 mln. Its main investors are Italian and international institutional investors.

Separately, Prelios said that it has divested its stake in the Pentagramma redevelopment project in Rome. The development complex involves four buildings in the Italian capital including the former State mint. Prelios owned 17.5% of the project through its 35% stake in Finprema, a company which entered into a 50/50 joint venture with Fintecna for the development of the project.

Launched in 2007, Progetto Pentagramma involves the redevelopment of four properties which on completion will have an expected total book value of EUR 406 mln. Main assets are the former State mint which is to be converted into a prestigious luxury hotel and brand residence as well as the former Geological Institute and the Scalo San Lorenzo complex which are to be converted into services facilities.

Prelios, formerly known as Pirelli RE, said the deals are 'in line with the company's strategic repositioning which foresees a gradual reduction of the net invested capital in real estate investments and focuses more on its activities as a pure asset management company, increasing the assets managed for third parties'. This transaction has a positive impact on Prelios' net financial position of around EUR 20 mln, it added.