ANNUAL REPORTS AT 31 DECEMBER 2012 APPROVED FOR LISTED FUNDS

Jan 31 2013
TECLA FONDO UFFICI
  • AVERAGE ANNUAL YIELD FROM PLACEMENT 10.8% EQUAL TO TWICE AS MUCH VS TARGET
  • NAV EURO 355,8 PER UNIT; TOTAL NAV EURO 230.06 MLN (+19.12% VS. RESIDUAL INVESTED EQUITY AMOUNTING TO EURO 193.1 MLN)
OLINDA FONDO SHOPS
  • AVERAGE ANNUAL YIELD FROM PLACEMENT 5.5% IN LINE WITH TARGET
  • NAV EURO 465.09 PER UNIT; TOTAL NAV EURO 242.8 MLN (+13.46% VS. RESIDUAL INVESTED EQUITY AMOUNTING TO EURO 214 MLN)
CORPORATE GOVERANCE
  • TERMINATION OF CEO DARIO FRIGERIO BY MUTUAL CONSENT WITH THE COMPANY
  • THE CURRENT MANAGEMENT HEADED BY GENERAL MANAGER RICCARDO SERRINI CONTINUES THE PATH DEFINED FOR THE COMPANY MANAGEMENT AND RELAUNCH

Milan, 30 January 2013 – The Board of Directors of Prelios SGR, held on today’s date, has approved the reports at 31 December 2012 of its listed seeded real estate funds.

Tecla Fondo Uffici Report

For the Fund, placed at the beginning of March 2004, the distributable operating profit in the first six months of 2012 amounted to approximately 1.8 million euro, net of the unrealized capital gains.

It should be noted that during the six month period the Fund transferred three properties, for a total value of 10.35 million euro, with a gross capital loss of 1.4 million euro against book value and a capital gain of 16,000 euro versus the last OMV estimated by the Fund independent appraiser.

From placement date, the Fund has achieved an average annual yield of 10.8%, equal to twice as much versus the target of 5.5%.

The Board conservatively resolved not to reimburse any equity or to pay out proceeds, in view of the forthcoming repayment covenants envisaged under the loan contract.

NAV is 355.8 euro per unit, with a premium of 123.8% against Stock price at the end of December 2012 (159 euro per unit at 31 December). The cap value obtainable on the market (so-called Open Market Value) from the 22 properties owned by Tecla Fund at 31 December 2012 amounts to nearly 410.03 million euro (appraisal made by the independent expert Patrigest S.p.A.). The Fund total NAV is equal to 230.06 million euro.

Olinda Fondo Shops Report

For the Fund, placed at the beginning of December 2004, the distributable operating profit in the first six months of 2012 amounted to -8,4 million euro, net of unrealised capital gains.

It should be noted that the Fund sold one property in the semester for a total value of 230,000 euro, with a gross capital loss of about 3,000 euro on book value.

The result of the ordinary management is 0.2 million euro, however as a result of the capital loss primarily caused by the update of the properties valuation and in the light of the current market situation, it is not possible to distribute any proceeds.

From placement date the Fund has achieved an average annual yield of 5.5%, in line with the target of 5.5%.

The Board conservatively resolved not to reimburse any equity or to pay out proceeds, in view of the forthcoming repayment covenants envisaged under the loan contract

NAV is 465.09 euro per unit, with a premium of 327% against Stock price at the end of December (108.9 euro per unit at 31 December). The Fund total NAV is 242.8 million euro. The cap value obtainable on the market (so called Open Market Value) from the 27 properties owned by Olinda Fund at 31 December 2012 amounts to about 482.3 million euro (estimate report of the independent expert Scenari Immobiliari S.r.l.). The value of properties reported, as a result of the recent review of the dispo plan and in view of the Fund residual duration, is equal to 472.2 million euro.

Company Governance

Dario Frigerio, Prelios SGR CEO, resigned in agreement with the Company after having completed the outlined path for the structural and organisational consolidation of the SGR.

In this respect, the Board of Directors, the Board of Statutory Auditors and the Chairman Alberto Rossetti thank Dario Frigerio for the activity carried out.

The current management, headed by the General Manager Riccardo Serrini, continues the plans and the objectives outlined for the Company’s management and relaunch.

The CEO powers have been temporarily reassigned to the General Manager, while the Company is working to define the overall corporate governance that will be finalized within 3 the first quarter of 2013, with the purpose to further strengthen Prelios SGR management autonomy and market positioning.