Google+ Massimo Caputi - Finanza e Mercato Immobiliare: THE NEW PRELIOS’ RELAUNCH

venerdì 10 maggio 2013

THE NEW PRELIOS’ RELAUNCH

€185 MILLION CAPITAL INCREASE, € 10 BILLION ASSETS UNDER MANAGEMENT. ONLY SERVICES, NO MORE DIRECT INVESTMENTS.

Nobody would’ve bet on Prelios’ relaunch a year ago.
Against all odds,  Feidos 11 – the investment vehicle founded by Feidos, Diaz della Vittoria Pallavicini, Rovati, Cornetto Bourlot  - attempted what seemed an impossible mission, gaining the confidence of current Prelios shareholders and lenders.


 


The new plan is based on  these market forecasts:
  • Institutional real estate investments in Italy will keep falling and year 2007 prices won’t easily be seen again, at least in medium term;
  • Commercial property value will drop as new selling structures (e.g. Virtual shops) arise in the commercial sector for the final client benefit;
  • In the coming years Italy will stay out of the foreign Institutional investors’ radars, except for a few market segments. Unfortunately 2011changes in the rules to the detriment of foreign investors, have had a negative effected on the attitude towards Italy which is now considered unreliable.

The announced Plan is already underway and comprises:
  • An intense reinforcement of the operating companies
  • Holding downsizing: reduction of human resources from 140 to 50 people, 90 of which will flow into the operating companies. Focus on integrated services giving up the Holding direct investment policy;
  • The European services’ operational re-launch (not just in Germany and Poland) with a “European Desk” based in London;
  • Startup of 8 service companies with innovative products for investors, big public and private real estate landlords;
  • Extended top management independency and responsibility for those in charge of leading the operating companies.

With Sergio Iasi, Chief Executive Officer, the Holding will continue to play a strong and strategic coordination role (finance, strategic development, audit and control). Its tasks will concentrate in defining alliances with European partners which are already being identified.
 
 

Deal Milestones:
After months of complex work, advisors, banks, Pirelli, Camfin, Feidos 11 have agreed on the industrial plan to relaunch the company that up until 2007 had been the star of the Italian real estate sector.
The deal implied hard work. It all started in 2012 when Lazard was appointed by the company to look for an industrial and financial partner able to regenerate and develop the business of Prelios, whose President, Marco Tronchetti Provera,  was deeply involved.
Lazard soon identified two potential partners: the American Fortress Fund, working in Italy as Italfondiario, and the Italian Club deal, Feidos 11.
All the main Italian players declined the invitation and stood by watching events.
  • In October 2012 Prelios chose to deal on an exclusive basis with Feidos 11 appreciating its less aggressive offer and the commitment of a European team of experienced manager;
  • In November 2012  Prelios and Feidos signed the Memorandum of Understanding;
  • the frame of agreement was signed in December 2012 and so was the termsheet with the final agreements on March 27th  2013. All parties committed to complete the transaction by May 2013;
  • Feidos 11 was formally founded as a club deal incorporating solid and creative managers from Europe and important investors (Diaz della Vittoria, Rovati, Cornetto Bourlot);
  • In February at the Cannes Mipim  Prelios’ stand was particularly targeted: foreign investors appreciated the new management, operators regarded the company with renewed interest, many international investors looked at Prelios’ assets in Germany with attention.
  • On March 27th 2013 Prelios’ Board of Directors approved the plan to relaunch the company: the transaction envisages a capital increase of 185 million euro in total, ensuring at least 100 €/mln of new resources to be subscribed in cash by the parties  -Feidos 11 , Pirelli, the market, Unicredit, Intesa San Paolo and the current parties of Prelios’ shareholder agreement led by Camfin-. The transaction also comprises an agreement with the lending entities: a 250€/mln senior loan and a 280€/mln of convertible bonds. The shareholders meeting on May 8th appointed the new Board of Directors and launched the capital increase.
 


 
 
Today Prelios can count on approximately 900 people, half of them based in Italy.
The holding controls 7 service companies (Sgr, Property&Facility, Agency, Npl Management, Germany Residential, Germany Commercial), and holds minority stakes into 207 vehicles, it manages approximately 11,5€/bln of real estate assets mostly based both in Germany and Italy. The SGR manages 20 funds.

This is the true story of an Italian Company rebirth.