PRELIOS SGR: APPROVED ANNUAL REPORTS AT 31 DECEMBER 2013 FOR LISTED FUNDS

Jan 30 2014

TECLA FONDO UFFICI

  • 10% AVERAGE ANNUAL YIELD FROM PLACEMENT
  • NAV 317.9 EURO PER UNIT
  • TOTAL NAV EURO 205.5 MLN
    (+ 6.4% VS. RESIDUAL INVESTED EQUITY AMOUNTING TO EURO 193.1 MLN)

OLINDA FONDO SHOPS

  • 5% AVERAGE ANNUAL YIELD FROM PLACEMENT
  • NAV EURO 374.06 PER UNIT
  • TOTAL NAV EURO 195.3 MLN
    (-9.6% VS. RESIDUAL INVESTED EQUITY AMOUNTING TO EURO 214 MLN)

Milan, 29 January 2014 – The Board of Directors of Prelios SGR, held on today’s date, approved the annual reports at 31 December 2013 of its listed seeded real estate funds.


Tecla Fondo Uffici Report

From placement date in March 2004, the Fund has achieved an average annual yield of 10%, equal to about twice as much versus its 5.5% target.

In 2013 the Fund disposed one property in Palermo and one real estate portion at Ivrea, for a total value of euro 9.9 million, with a total gross plus of 0.4 million euro on book value.

The lease contracts stipulated by the Fund during 2013 include, in particular, the lease contract with Tigem, Telethon Institute of Genetics and Medicine, relating to a building of the real estate complex located in Pozzuoli, where the Institute transferred its headquarters that inaugurated last December in the presence of the President of Italian Republic.

Another lease contract was entered into with a leading company operating in the energy sector, that needed more spaces in addition to the leased property in Rome.

The Fund’s distributable result for 2013 was equal to euro -7.1 million, net of unrealized capital losses. Consequently, no proceeds will be paid out.

Considering the negotiations underway with the lending banks for the granting of an extension of the outstanding loan, the Board resolved for the time being not to make any unit partial reimbursement.

NAV is equal to euro 317.9 per unit. ON 31 December 2013 the Stock price per unit was equal to euro 158.8. The total NAV of Tecla Fondo Uffici, with reference to 21 assets still in the portfolio at 31 December 2013, is equal to euro 205.5 million.

Relevant events:

As envisaged under the regulatory provisions (Ministerial Decree n. 228 of 24-05-1999), after the expiry of the three-year term of the mandate of the independent appraiser Patrigest S.p.A., CBRE Valuations S.p.A. was appointed as new independent appraiser of Tecla Fondo Uffici. The new appraiser has already valuated the portfolio at 31 December 2013.


Olinda Fondo Shops Report

From placement date in March 2004, the Fund has achieved an average annual yield of 5%, close to the target of 5.5%.

In 2013 the Fund sold one property in Bergamo for a total value of euro 7.9 million, with a gross loss of about euro 0.9 million on book value.

The lease contracts stipulated by the Fund during 2013 include, in particular, the lease contract renewed with the main tenant (who leased a surface of over 90,000 sq m relating to 5 properties owned by the fund), and the contract renewed with a leading company operating in the movie projection sector, relating to properties located in Milan and in Moncalieri.

Following to an important project for the improvement and renovation of the complex, the Fund successfully opened the Shopping Center Centro Commerciale Grotte Center of Camerano, in the province of Ancona.

The Fund’s distributable result for 2013 was equal to euro -44.9 million, net of unrealized capital losses. Consequently, no proceeds will be paid out.

Considering the negotiations underway with the lending banks for the granting of an extension of the outstanding loan, the Board resolved for the time being not to make any unit partial reimbursement.

NAV is equal to euro 374.06 per unit. The Stock price per unit on 31 December was equal to euro 106.4. The total NAV of Olinda Fondo Shops, with reference to 26 assets still in the portfolio at 31 December 2013, is equal to euro 195.3 million.


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With reference to what was already announced upon disclosure of the reports at 30 June 2013, the Company continues to carry on the management activities aimed at completing the process for the disposal of the Funds’ assets compatibly with the current term of the residual life of Tecla and Olinda Funds, taking into account the persistent low absorption capacity of the market and the lack of recovery signs in a short term. In this framework, the Company considered – with the support of its authoritative advisors – the opportunity to extend the Funds’ duration and amend the relevant management regulations, also in view of an increased absorption capacity of the respective markets in the next few years. Such approach, that has been analysed based on the real estate rationale with the aim to protect the value of the Fund in the best possible way in the interest of the Fund’s unitholders and creditors, is still under discussion with the Institutions. Though a solution allowing a balanced and systematic management of the Funds is expected to be adopted, should this not occur in the next few months, such circumstance would mean a significant uncertainty about the capacity of the Funds to orderly dispose their real estate assets, with a negative impact also in terms of sale value. Following to the outcome of the discussions on the above issues, the Company will make the most appropriate strategy and real estate valuations for the management of the Tecla and Olinda Funds.


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For further information on the annual reports at 31 December 2013 of the listed funds Tecla e Olinda reference should be made to the financial notices to be published on 30 January 2014 in the daily newspapers “Corriere della Sera” and “Il Sole 24 Ore”. The aforementioned reports and the relevant estimate reports of the funds’ assets 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 websites at www.preliossgr.com, www.fondotecla.com and www.fondo-olinda.com.

For further information:
Prelios SGR Press Office Tel. +39/02/6281.41571
pressoffice@preliossgr.com
Prelios Investor Relations Tel. +39/02/6281.4057
www.preliossgr.com; www.fondotecla.com; www.fondo-olinda.com