THE TRANSACTION WILL MAKE THE TRANSFER POSSIBLE BEFORE THE EXPIRY OF THE FUND
Milan, 10 July 2014 – Prelios SGR informs that, on behalf of Olinda - Fondo Shops, a listed real estate mutual fund, it reached a binding agreement with AXA Real Estate and Apollo European Principal Finance Fund II, a fund affiliated with Apollo Global Management LLC, for the disposition of the Fund’s entire residual portfolio, to be completed by the Fund’s current expiry date at 31 December 2014.
The agreement envisages the sale en bloc of the 26 Fund’s assets for a price of 303 million euro in total, of which 8 million euro are subject to the achievement of certain lease conditions regarding some assets before the closing date scheduled by 19 December 2014.
The agreed price corresponds to a discount equal to 28% on the Fund Open Market Value (OMV) at 31 December 2013. Considering the current regulatory framework of reference in relation to hypotheses of extension, the execution of the transaction, for which the Fund Advisory Committee and the SGR Investment Committee have already expressed their favourable opinion, will enable Prelios SGR to proceed with the Fund liquidation, in line with the Fund's expiry date. In consideration of the commitments undertaken relating to the representations and warranties made by the purchasers, the Company estimates that a first equity reimbursement to the Fund unitholders of at least 85,00 euro per unit may be made after the approval of the annual report as of 31 December 2014 following the completion of the transaction.
Olinda - Fondo Shops is a real estate mutual fund managed by Prelios SGR and listed on the MIV of Borsa Italian S.p.A. (ISIN IT0003740039 - code QFOLI), dedicated to investments in the retail & entertainment sector. The Fund was established in 2004 with an initial portfolio of 42 assets for a total OMV of 743 million euro. Following the marketing activities carried out over the last few years for the purposes of the Fund liquidation, the Fund has now a residual portfolio of 26 assets including stores, retail facilities and multiplex cinemas, primarily located in the regions of Piedmont, Lombardy, Veneto, Friuli Venezia Giulia, Emilia Romagna and Lazio.
The completion of the transaction is subject to the fulfilment of the procedures relating to the possible exercise of pre-emptive right by some current tenants and the usual conditions precedent regarding transactions of this nature, including the release of the authorisation by the European antitrust authority.
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Prelios SGR is one of the leading Italian real estate fund management companies. The value of asset under management (AuM) is equal to nearly 3.7 billion euro (at 30 June 2013), divided into 25 funds (3 of which established in the first quarter of 2014). Nearly 36% of fund investors are financial institutes and investment funds, nearly 19% are corporate clients, and the residual part includes foundations and pension funds, insurance companies, public entities and retail investors. Prelios SGR manages about 1,700 properties, located primarily in Rome and the province of Rome (28%), Milan and the province of Milan (21%), and Turin (10%). The asset classes most representative of the properties under Prelios SGR management are the following: office (44%), industrial and logistics (25%), retail & entertainment (19%) and residential (nearly 7%).
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For further information:
Prelios SGR Press Office Tel. +39/02/6281.41571
pressoffice@preliossgr.com
Prelios Investor Relations Tel. +39/02/6281.4104 ir@prelios.com
www.preliossgr.com; www.fondo-olinda.com