OLINDA FONDO SHOPS
PRELIOS SGR APPROVES THE INTERIM REPORT AT 30 JUNE 2014
- TOTAL NAV 68 €/MLN
- NAV 130.30 € PER UNIT
- -2,8% AVERAGE ANNUAL YIELD FROM PLACEMENT
THE AGREEMENT AS PER COMMUNICATION TO THE MARKET RELEASED ON 10 JULY 2014 REGARDING THE ENTIRE DISPOSAL OF THE RESIDUAL PORTFOLIO WILL ENABLE THE FUND TO REACH THE SALE OBJECTIVE WITHIN THE FUND EXPIRY DATE
Milan, 30 July 2014 – The Board of Directors of Prelios SGR, held on today’s date, approved the interim report at 30 June 2014 of Olinda - Fondo Shops, listed real estate investment fund, reflecting the transaction regarding the disposal of the entire portfolio disclosed to the market on 10 July 2014.
During the first half of 2014 the Fund did not complete any transactions for the sale of properties or single assets, despite the intense marketing activities carried out by the SGR.
The lease contracts stipulated during the first half of 2014 include a contract for retail spaces (average retail surface) in a property located in Milano, with a leading consumer electronics retailer and a contract for retail spaces with a leading catering operator.
The Fund’s distributable result in the first half of 2014 was equal to euro -129.3 million, net of unrealized capital losses. Consequently, no proceeds will be paid out.
At 30 June 2014, NAV is equal to euro 130.30 per unit (total NAV totals euro 68 million) against euro 374.06 at 31 December 2013 (total NAV equal to euro 195.3 million). At 30 June 2014 the stock price per unit was equal to euro 155.00 against euro 106.40 at 31 December 2013. The theoretical average annual yield from placement at 30 June 2014 is equal to -2.8%.
With reference to the transaction regarding the disposal en bloc of Olinda - Fondo Shops portfolio, communicated to the market on 10 July 2014, Prelios SGR specifies that the overall transfer price agreed upon for the entire portfolio (equal to euro 303 million, of which euro 8 million subject to the satisfaction, before the closing date scheduled within 19 December 2014, of specific lease conditions) corresponds to a discount of 28% against the market value of the assets at 31 December 2013 (euro 421.1 million as per survey carried out by the Independent Appraiser) plus the value of the equity investment in Olinda Centers S.r.l. (the company holding the commercial licenses for specific assets, included in the transaction).
It should also be noted that the Fund’s overall debt is equal to euro 234 million at 30 June 2014, unchanged against the debt amount registered at 31 December 2013 indicated in the annual report, since no transactions regarding single assets were completed in the first half of 2014. Should the transaction be completed, the debt amount is expected to be fully repaid.
As to net proceeds deriving from sales, Prelios SGR confirms that, considering the commitments undertaken in relation to the statements and guarantees released, the Company assumes that, before the completion of the transaction, a first repayment in favour of the Fund’s unitholders amounting to at least euro 85.00 per unit, is deemed possible after the approval of the annual report at 31 December 2014. Based on the aforementioned estimate, the Fund’s average annual yield would therefore be equal to approximately -4.9% since 2004, the year in which the Fund’s units were placed. The final comprehensive repayment (and the actual average annual yield which is assumed to date in the range between the theoretical -2.8% and the aforementioned -4.9%) may be determined only after the completion of the Fund’s liquidation.
It should also be noted that the completion of the transaction is subject to the fulfilment of all the procedures related to the possible exercise of the pre-emptive right held by current tenants and to the conditions precedent typical for transactions of this nature, including the release of the authorisation from the European Competition Authority.
The interim report and the property surveys drafted by the independent appraisers will be made available at the offices of Prelios SGR, Borsa Italiana, the Depositary Bank State Street Bank S.p.A. and on the website www.fondo-olinda.com.