Real Estate

Pirelli RE is an alternative asset manager specializing in the real estate sector. It manages funds and companies that own real estate and non performing loans in which it co-invests through minority stakes, aligning its interests with those of investors, and to which it provides, as well as to third party clients, a full range of specialized real estate services.

The Group's activities involve identifying investment opportunities based on the different types of real estate products (commercial, residential and NPL) and geographic location (Italy, Central and Eastern Europe), performing professional management services and supplying quality specialized services (integrated facility management, property management, credit servicing and agency).

With offices in Italy's major cities and an extensive operating structure, the Group is capable of operating on a nationwide basis and is also present in Germany, Poland, Romania and Bulgaria.

Pirelli RE now has a recognized name for professionalism and reliability, as well as for its ability to offer innovative real estate products and services, asset-backed ?nancial engineering and organizational processes: a reputation founded on the results achieved and on the values expressed over its history in this particular industry.

The expertise and focus of the management team, the ability to act as a one-stop shop for the entire real estate cycle, the experience gained in large-scale, complex operations and the extensive know-how in the various areas of activity constitute the key success factors.

Pirelli RE results overview

EBIT including income from equity participations amounted to 236.5 million euros, up 10% compared with the previous year. Net of the effects of the temporary consolidation of DGAG, this result was equal to 215.3 million euros, in line with end 2006.
Attributable net income amounted to 151.1 million euros (-5% compared with 159.5 million euros the previous year). Net of the effects of the temporary consolidation of DGAG, net income amounted to 162.8 million euros (+2%).
The net financial position at end 2007 was negative for 289.7 million euros, compared with a negative figure of 337.4 million euros at the end of September and of 96.4 million euros as of 31 December 2006. The increase with respect to the previous year reflects the investments made during the period, the distribution of dividends, the share buyback and the purchases of stakes in funds.
Employees of Pirelli RE as of 31 December 2007 counted 2,980 (including 298 employees linked to the platform of BauBeCon, whose consolidation will be completed in 2008, and 24 temporary workers) compared to 1,864 at the end of 2006. The greater number (1,116 employees) can be attributed to growth in Germany, Poland and in other Eastern European countries, to the acquisition of the company Ingest Facility, and to growth of the NPL business.

Pirelli RE