Investments in associates and joint ventures

10. Investments in associates and joint ventures

Investments in associates and joint ventures are equal to Euros 534,194 thousand compared to Euros 3,825,928 thousand at December 31, 2006.

Movements during the year are as follows:

(in thousands of Euros)

12/31/2007

12/31/2006

Beginning balance

3,825,928

4,542,902

Acquisition/change in share capital and reserves

260,103

1,228,115

Distribution of dividends

(164,562)

(87,188)

Disposals and wind-ups

(3,352,603)

(50,972)

Share of earnings (losses)

118,608

103,958

Reclassifications and other

(159,359)

(1,941,245)

Movement in provisions for other liabilities and charges

6,079

30,358

534,194

3,825,928

The following table details the movements in investments in associates:

(in thousands of Euros)

12/31/2006

Acquisition/ change in share capital and reserves/other

Distribution of dividends/ reserves

Disposals and wind-ups

Share of
earnings (losses)

Reclassifications and other

Movements in prov. for other liabil. and charges

12/31/2007

Dixia S.r.l.

5,589

(52)

-

-

(177)

92

-

5,452

Orione Immobiliare
Prima S.p.A.

1,712

2,005

-

-

(3,155)

-

-

562

Sci Roev Texas
Partners L.P.

2,224

-

-

-

(1,000)

-

-

1,224

Spazio Investment N.V.

47,564

15,506

(1,552)

-

7,008

500

-

69,026

Turismo e Immobiliare S.p.A.

4,147

2,369

-

-

(747)

-

-

5,769

Eurostazioni S.p.A.

53,616

-

(1,675)

-

1,745

-

-

53,686

Other PRE group
companies

(2,104)

329

(60)

(173)

(1,195)

382

(2,821)

Other Group companies

1,761

18

-

-

204

(459)

-

1,524

Total investments in associates

114,509

20,175

(3,287)

(173)

2,683

133

382

134,422

The Group’s share of the fair value of the company Spazio Investment N.V., listed on the Alternative Investment Market of the London Stock Exchange, calculated using the market price at December 31, 2007 of Euros 11.85, is Euros 53.9 million.

The following table details the movements in investments in joint ventures:

(in thousands of Euros)

12/31/2006

Acquisition/ change in share capital and reserves/other

Distribution of dividends/ reserves

Disposals and wind-ups

Share of
earnings (losses)

Reclassifications and other

Movements in prov. for other liabil. and charges

12/31/2007

Afrodite S.à r.l.

3,843

117

(3,095)

-

2,085

-

-

2,950

Aida RE B.V.

-

6,236

-

(11,340)

-

5,104

-

Alceo B.V.

-

2,310

-

-

(1,442)

-

(304)

564

Alimede Luxembourg S.à.r.l.

54

2,051

-

-

1,062

-

-

3,167

Alnitak S.à r.l.

2,106

(43)

-

-

295

-

-

2,358

Altair Zander Italia S.r.l.

70

-

-

-

82

-

-

152

Aree Urbane S.r.l.

7,920

-

-

-

(1,138)

-

-

6,782

Artemide S.à r.l.

2,417

(123)

(1,850)

-

1,252

-

-

1,696

Austin S.à.r.l.

3,790

-

(2,083)

-

4,027

76

-

5,810

Bicocca S.à.r.l.

-

388

-

-

(139)

(137)

112

Bresso Energia S.r.l.

-

3

-

-

(2)

-

1

Capitol Immobiliare S.r.l.

39

100

-

-

(71)

-

-

68

Castello S.r.l.

144

-

-

-

53

-

-

197

Colombo S.à.r.l.

5,530

-

(924)

-

14,334

-

-

18,940

Consorzio ARP

53

1

-

-

-

-

-

54

Consorzio G6 Advisor

22

-

-

-

-

-

-

22

Continuum S.r.l.

4,688

(85)

-

-

(1,050)

-

-

3,553

Dallas S.à.r.l.

3,790

-

(2,083)

-

4,027

76

-

5,810

Delamain S.à.r.l.

-

4,529

-

-

17,473

(1,088)

-

20,914

Dolcetto Otto S.r.l.

11

129

-

3

(143)

-

-

-

Domogest S.r.l.
(in liquidation)

1,025

(32)

-

(993)

-

-

-

-

Doria S.à.r.l.

5,422

-

(918)

-

14,329

-

-

18,833

Elle Dieci S.c.a.r.l.

40

-

-

-

-

-

-

40

Elle Tre S.c.a.r.l.

40

-

-

-

-

-

-

40

Erice S.r.l.

1,251

173

(2,646)

-

2,699

-

-

1,477

Espelha - Serviços de Consultadoria L.d.A.

39,222

-

(48,300)

-

12,480

-

-

3,402

European NPL S.A.

9,196

9,630

-

-

2,932

-

-

21,758

Fattoria Medicea S.r.l.

525

-

-

-

(41)

-

-

484

Finprema S.r.l.

-

2

-

-

-

-

-

2

Galatea S.r.l.

-

-

-

-

106

-

(36)

70

Gamma RE B.V.

-

105,742

(29,418)

(19,899)

30,178

(1,972)

-

84,631

Gestioni Immobiliari
2003 S.r.l.

98

489

-

(284)

(303)

-

-

-

Golfo Aranci S.p.A. -
Società di trasformazione urbana

1,378

1,533

-

-

(175)

-

-

2,736

Jamesmail B.V.

-

4,982

(376)

(556)

(4,050)

-

Kurpromenade 12 Timmendorfer
Strand GG KG

-

6,194

-

(50)

208

-

-

6,352

Immobiliare Prizia S.r.l.

6,351

-

-

-

(310)

(92)

-

5,949

IN Holdings I S.à.r.l.

407

-

-

-

(233)

-

-

174

Induxia S.r.l.

1,806

-

-

-

(698)

-

-

1,108

Inimm Due S.à.r.l.

3,959

85

(3,522)

-

808

-

-

1,330

Iniziative Immobiliari S.r.l.

7,385

-

(2,659)

-

(711)

-

-

4,015

Landgesellschaft Schleswing Holstein mbh

-

19,254

-

-

698

-

-

19,952

Localto ReoCo S.r.l.

4

4

-

-

(4)

-

-

4

Maro S.r.l.

42

806

-

-

(267)

-

-

581

Masaccio S.r.l.

195

-

-

-

-

-

-

195

Masseto I B.V.

18,467

(14)

(21,199)

-

3,212

(161)

-

305

Max B.V.

5,134

39

(2,250)

-

1,552

83

-

4,558

Mistral Real Estate B.V.

-

17,229

-

-

(795)

-

-

16,434

(in thousands of Euros)

12/31/2006

Acquisition/ change in share capital and reserves/other

Distribution of dividends/ reserves

Disposals and wind-ups

Share of
earnings (losses)

Reclassifications and other

Movements in prov. for other liabil. and charges

12/31/2007

M.S.M.C. Italy Holding B.V.

12,527

(91)

(2,957)

-

(1,518)

1,972

-

9,933

MP Facility S.p.A.

1,237

195

-

-

2,408

-

-

3,840

Nabucco RE B.V.

-

28,681

-

-

3,298

(31,979)

-

-

Nashville S.à.r.l.

3,791

-

(2,083)

-

4,027

74

-

5,809

Progetto Casa - Fondo comune investimento

-

12,493

-

-

(98)

-

-

12,395

Polish Investments Real Estate Holding B.V.

2,416

(19)

-

-

(465)

-

-

1,932

Polish Investments Real Estate Holding II B.V.

-

1,288

-

-

(32)

-

-

1,256

Popoy Holding B.V.

16,008

8

(17,133)

(14)

3,320

(10)

-

2,179

Progetto Bicocca
La Piazza S.r.l.

372

510

-

-

190

-

-

1,072

Progetto Nuovo
Sant'Anna S.r.l.

1,458

1,487

-

(1,485)

(423)

-

-

1,037

Progetto Gioberti S.r.l.

358

-

-

-

(330)

-

-

28

Quadrifoglio Milano S.p.A.

5,374

138

-

-

(249)

-

-

5,263

Resi S.r.l. (ex-Dolcetto Cinque S.r.l.)

8

-

-

-

(2)

-

-

6

Resident Baltic GmbH

-

262

-

-

-

-

-

262

Resident Berlin 1 P&K GmbH

3,855

372

-

-

11

-

-

4,238

Resident Brandeburg GmbH

-

1

-

-

-

-

-

1

Resident Sachsen P&K GmbH

-

162

-

-

(3)

-

-

159

Resident West GmbH

-

209

-

-

(16)

-

-

193

Rinascente/Upim S.r.l.

4,645

298

-

-

(2,312)

-

-

2,631

Riva dei Ronchi S.r.l.

719

-

-

-

(166)

-

-

553

Roca S.r.l.

341

3,241

-

-

(883)

-

-

2,699

S.AN.CO S.c.a.r.l.

2

-

-

-

-

-

-

2

S.I.MA.GEST2 S.c.a.r.l.

-

15

-

-

-

-

-

15

Sicily Investments S.à.r.l.

5

507

-

-

308

-

-

820

Solaia Real Estate B.V.

-

2,377

-

-

1,890

(4,267)

-

-

Solaia RE S.à.r.l.

-

5

-

-

-

8,317

-

8,322

Solaris S.r.l.

4,308

62

-

-

(1,772)

-

-

2,598

S.I. Real Estate
Holding B.V.

4,502

-

(3,000)

-

(417)

(500)

-

585

S.I.G. RE B.V.

-

3,285

-

-

(279)

-

-

3,006

Tamerice Immobiliare S.r.l.

14,783

(3)

(14,231)

-

2,240

1,088

-

3,877

Theta RE B.V.

-

7

(11)

31,990

31,976

Tizian Wohnen 1 GmbH

2,764

-

-

(272)

12

-

-

2,504

Tizian Wohnen 2 GmbH

1,148

-

-

(107)

10

-

-

1,051

Trinacria Capital S.à.r.l.

5

594

-

-

368

-

-

967

Trinoro S.à r.l.

3

(1)

-

-

(5)

-

3

-

Trixia S.r.l.

798

-

-

-

(1,728)

-

930

-

Verwaltung Mercado Ottensen
Grundstuecksgesellschaft

-

10

-

-

-

-

-

10

Vespucci S.à.r.l.

5,529

-

(924)

-

14,344

-

-

18,949

Vesta Finance S.r.l.

12

-

-

-

-

-

-

12

Waterfront Flegreo S.p.A.

172

(3)

-

-

(11)

-

-

158

Altre società gruppo PRE

-

109

-

-

(5)

-

-

104

Solar Utility S.p.a.

-

2,000

-

-

(250)

-

-

1,750

Olimpia S.p.A.

3,487,855

-

-

(3,328,953)

(158,902)

-

-

Total investments in joint ventures

3,711,419

239,928

(161,275)

(3,352,430)

115,925

(159,492)

5,697

399,772

Total investments in associates and joint ventures

3,825,928

260,103

(164,562)

(3,352,603)

118,608

(159,359)

6,079

534,194

The disposals and winds-ups of Euros 3,352,603 thousand mainly refer to the sale of Olimpia S.p.A. (Euros 3,328,953 thousand). Following the agreement reached with leading financial institutional investors and industry operators (Assicurazioni Generali S.p.A., Intesa San Paolo S.p.A., Mediobanca S.p.A., Sintonia S.A. and Telefonica S.A.), the investment was sold on October 25, 2007 to Telco S.p.A..

As regards the share of earnings, reference should be made to Note 38 “Share of earnings (losses) of associates and joint ventures”.

The reduction of Euros 159,359 thousand, reported in the column “Reclassification and other”, mainly refers to the sale of Olimpia S.p.A. for an amount of Euros 158,902 thousand. This amount includes Euros 119,108 thousand of the gains previously recorded in equity and transferred to the income statement and Euros 39,794 thousand for the adjustment of the investment value to the sales price.

Key data relating to associates and joint ventures at December 31, 2007 refer to those in the Real Estate Sector and are indicated as follows:

(in thousands of Euros)

Associates

Joint Ventures

Non-current assets

700,244

3,063,440

Current assets

561,781

8,832,618

Non-current liabilities

540,387

6,003,301

Current liabilities

156,964

4,025,930

Revenues from sales and services

203,020

2,615,749

Costs

(195,027)

(3,173,250)

Income

79,955

450,469

Finally, the shares of associates and joint ventures are pledged for an amount of Euros 121,386 thousand.