AGREEMENT BETWEEN PRELIOS SGR AND TERNIENERGIA FOR THE ESTABLISHMENT OF A RENEWABLE ENERGY REAL ESTATE FUND

Jun 24 2013
  • THE FUND, CALLED “RA” - RENEWABLE ASSETS, WILL HAVE AN INITIAL INVESTMENT TARGET OF 50-100 MLN/€
  • TERNIENERGIA WILL TRANSFER PLANTS ALREADY OPERATING AT FULL CAPACITY FOR 75 MLN/€
  • EXPECTED TRANSACTION REPLICABILITY



Milan, June 24 2013 – Prelios SGR and TerniEnergia (a company operating in the renewable energy, energy efficiency and waste management sectors, listed on the Star segment of Borsa Italiana) signed on today’s date an agreement for the establishment of “RA” - Renewable Assets, a closed-end real estate mutual fund, reserved for qualified investors, investing in assets functional to the generation of energy from renewable sources.

The Fund will be established, placed and managed by Prelios SGR, it will have an initial equity raising target between 50 and 100 million euro and its term will be 20 years.

This speculative Fund may reach an LTV of 80%.

TerniEnergia will initially transfer to the Fund some renewable energy plants already operating at full capacity for a gross OMV of about 75 million euro, with consequent and concurrent subscription of the Fund units.

TerniEnergia, in agreement with Prelios SGR, will also play a strategic role in the development of a pipeline of plants to be constructed or already existing in the photovoltaic sector or in other renewable energy segments, that may be transferred to the Fund and managed by TerniEnergia as tenant.

Prelios SGR will rely on the specialist support of Power Capital, in its capacity as advisor, providing advisory services in investment and divestment transactions.

This agreement means for Prelios SGR a significant strategic diversification in sectors close to the real estate industry with a high growth rate and capable to generate steady cash flows for investors. The funds specialised in renewable energy actually benefit from an investment cycle not strictly correlated to the traditional real estate market performance and are currently developing a true asset class, also in Italy, for the investment strategies of the major institutional investors.

This agreement envisages the possibility to replicate the project through new periods for the subscription of the Fund units and/or the start of operations of other real estate funds with like features.The legal Advisor for the transaction was Galante and Associates Law Firm.