The strong expansion of thescope of business of the Pirelli & C. Group following the numerousacquisitions and joint ventures of the past two years and itswell-known international focus have led the Group to establishPirelli & C. Real Estate Ltd, an international real-estate holdingcompany based in the United Kingdom and fully owned by Pirelli& C. In addition, the name of Milano Centrale SpA has been changedto Pirelli & C. Real Estate SpA. This evolution underscoresthe group's growth in size and the international developmentprospects in the field of real estate, which has effectivelybecome one of the core businesses of the Pirelli & C. Group.
The company's strong recent development has also led to theneed to summarise the current situation for the market. It shouldbe noted that Pirelli & C. has no plans to list its real-estatebusiness on the stock market.
The establishment of Pirelli & C. Real Estate is a further stepin the growth and transformation process that has allowed MilanoCentrale and its subsidiaries to become the leading Italianoperator in the field of asset management and specialised real-estateservices.
Through both acquisitions and in-house development, the companynow manages assets totalling approximately €8 billion, of which€4 billion belong to third parties and €4 billion to companiesheld by the leading American real-estate investment funds andby Italian investors, in which Pirelli & C. Real Estate hasa minority interest.
Some of the Group's main transactions in the field of real estateinclude the acquisitions of Unim, part of the shareholdingsof Risanamento Napoli, and the real-estate portfolio of Compart-Montedison,Parnasi and RCS. Following these initiatives, specialised vehicleswere created as joint ventures with investors whose assets weredifferentiated by type and risk profile (offices, residences,business concerns and multiplexes, re-utilisation of industrialreal estate) to be managed actively by dedicated structures.In addition, important investments include a minority stakein the "Grandi Stazioni" project and qualified shareholdingin CasaClick.it, the company's first real-estate portal establishedby integrating DomusClick and Casapark of the Moratti group.
In the service sector, the company has consolidated its high-profilepresence in the business of property and facility management,agencies and project management. This has also been implementedby integrating organisations that are already present in theterritory, such as Cagisa, Unim, Risanamento Napoli, Mediacasaand Progetti Creativi, as well as through strategic agreementswith Gabetti and Regus, respectively for the break up and divestmentof residential property and the creation of temporary offices.This development and the coverage of a full range of serviceshave led the company to take on important assignments for privatecompanies and for the divestment of the public real estate ofthe Ministry of Labour (G6 Consortium) and the Treasury.
The results that have been achieved have contributed to theincreased worth of the company, recently appraised at €361 millionfollowing the distribution of profits totalling about €109 millionto shareholder Pirelli & C. during the last period ended on30 June 2000. Based on this value, in addition to the 7,115shares issued in December 1999 for an initial free stock-optionplan that did not include the extraordinary effects generatedby the acquisition of UNIM, in December 2000 an additional 25,713shares were issued to employees at the unit price of L2,279,000(a nominal value of L100,000 plus L2,179,000 as a premium).The outstanding shares and the shares being issued to 48 Pirelli& C. Real Estate employees represent approximately 10% of thecompany's total share capital.
A new advertising campaign, which is scheduled to begin withina few weeks, will also help promote the new trademark of Pirelli& C. Real Estate.
The company's strong recent development has also led to theneed to summarise the current situation for the market. It shouldbe noted that Pirelli & C. has no plans to list its real-estatebusiness on the stock market.
The establishment of Pirelli & C. Real Estate is a further stepin the growth and transformation process that has allowed MilanoCentrale and its subsidiaries to become the leading Italianoperator in the field of asset management and specialised real-estateservices.
Through both acquisitions and in-house development, the companynow manages assets totalling approximately €8 billion, of which€4 billion belong to third parties and €4 billion to companiesheld by the leading American real-estate investment funds andby Italian investors, in which Pirelli & C. Real Estate hasa minority interest.
Some of the Group's main transactions in the field of real estateinclude the acquisitions of Unim, part of the shareholdingsof Risanamento Napoli, and the real-estate portfolio of Compart-Montedison,Parnasi and RCS. Following these initiatives, specialised vehicleswere created as joint ventures with investors whose assets weredifferentiated by type and risk profile (offices, residences,business concerns and multiplexes, re-utilisation of industrialreal estate) to be managed actively by dedicated structures.In addition, important investments include a minority stakein the "Grandi Stazioni" project and qualified shareholdingin CasaClick.it, the company's first real-estate portal establishedby integrating DomusClick and Casapark of the Moratti group.
In the service sector, the company has consolidated its high-profilepresence in the business of property and facility management,agencies and project management. This has also been implementedby integrating organisations that are already present in theterritory, such as Cagisa, Unim, Risanamento Napoli, Mediacasaand Progetti Creativi, as well as through strategic agreementswith Gabetti and Regus, respectively for the break up and divestmentof residential property and the creation of temporary offices.This development and the coverage of a full range of serviceshave led the company to take on important assignments for privatecompanies and for the divestment of the public real estate ofthe Ministry of Labour (G6 Consortium) and the Treasury.
The results that have been achieved have contributed to theincreased worth of the company, recently appraised at €361 millionfollowing the distribution of profits totalling about €109 millionto shareholder Pirelli & C. during the last period ended on30 June 2000. Based on this value, in addition to the 7,115shares issued in December 1999 for an initial free stock-optionplan that did not include the extraordinary effects generatedby the acquisition of UNIM, in December 2000 an additional 25,713shares were issued to employees at the unit price of L2,279,000(a nominal value of L100,000 plus L2,179,000 as a premium).The outstanding shares and the shares being issued to 48 Pirelli& C. Real Estate employees represent approximately 10% of thecompany's total share capital.
A new advertising campaign, which is scheduled to begin withina few weeks, will also help promote the new trademark of Pirelli& C. Real Estate.