Pirelli & C. Real Estate and Soros Real Estate Investors
today signed a joint venture agreement to pursue investments in the industrial real
estate sector.
Following the business model already established for the residential, office and retail
real estate management, according to the agreement a joint venture will be formed
between Soros Real Estate Investors with a 75% stake and Pirelli & C. Real Estate
with a qualified minority stake of 25% and with the management of the venture.
The newly constructed operational platform aims to invest more than €300 million in
Italy over the three-year period 2002-2004, using non-recourse financing for almost
70% of this amount. The investments will target existing portfolios and development
initiatives in the main “industrial” segments: logistics, transport, mixed-use industrial
and technological parks, self-storage.
The initial activities of the joint venture will include:
• the acquisition and restructuring of a multi-functional industrial complex,
formerly Ansaldo, in Milan;
• the assumption of a minority share of almost 30% in the vehicle company that
will develop the former Edilnord areas in Lacchiarella and Binasco (greater
Milan area).
The industrial sector in Italy accounts roughly for 15% of asset allocation of closed-end real estate funds (and is currently targeted almost entirely on the logistics sector), whereas in the United States almost 35% of manufacturing assets are owned by dedicated Real Estate Investment Trusts (Reits). In Italy there is growing interest from investors in this type of real estate, albeit that this has been held back by a shortage of product and the lack of suitably qualified and experienced partners.
This joint initiative by Pirelli & C. Real Estate and Soros Real Estate Investors - a private equity fund focused on real estate sector, capitalised at 1 billion dollars with a geographical focus on Western Europe and Japan - aims to become a leading player in a market rich with potential, combining the real estate expertise of Pirelli & C. Real Estate with the international know-how and competencies of the Soros Group.
The joint venture has been implemented with the assistance of Lazard.
today signed a joint venture agreement to pursue investments in the industrial real
estate sector.
Following the business model already established for the residential, office and retail
real estate management, according to the agreement a joint venture will be formed
between Soros Real Estate Investors with a 75% stake and Pirelli & C. Real Estate
with a qualified minority stake of 25% and with the management of the venture.
The newly constructed operational platform aims to invest more than €300 million in
Italy over the three-year period 2002-2004, using non-recourse financing for almost
70% of this amount. The investments will target existing portfolios and development
initiatives in the main “industrial” segments: logistics, transport, mixed-use industrial
and technological parks, self-storage.
The initial activities of the joint venture will include:
• the acquisition and restructuring of a multi-functional industrial complex,
formerly Ansaldo, in Milan;
• the assumption of a minority share of almost 30% in the vehicle company that
will develop the former Edilnord areas in Lacchiarella and Binasco (greater
Milan area).
The industrial sector in Italy accounts roughly for 15% of asset allocation of closed-end real estate funds (and is currently targeted almost entirely on the logistics sector), whereas in the United States almost 35% of manufacturing assets are owned by dedicated Real Estate Investment Trusts (Reits). In Italy there is growing interest from investors in this type of real estate, albeit that this has been held back by a shortage of product and the lack of suitably qualified and experienced partners.
This joint initiative by Pirelli & C. Real Estate and Soros Real Estate Investors - a private equity fund focused on real estate sector, capitalised at 1 billion dollars with a geographical focus on Western Europe and Japan - aims to become a leading player in a market rich with potential, combining the real estate expertise of Pirelli & C. Real Estate with the international know-how and competencies of the Soros Group.
The joint venture has been implemented with the assistance of Lazard.
Pirelli Press Office Tel. +39/02/8535.4270