The Carlyle Group and IMMOFINANZ Complete Acquisition of 230 Properties in Italy from San Paolo IMI for €320 Million

Milan - Global private equity firm The Carlyle Group and IMMOFINANZ, one of Europe’s largest property companies, have jointly acquired 230 Italian properties for a total investment value of about €320 million from San Paolo IMI Group. This transaction is one of the most significant sales in the Italian property market in 2004, and is a continuation of the investment strategy of Carlyle in Italy.

The properties cover a total area of 270,000 square meters and are primarily located in northern Italy, principally in the cities of Milan, Bologna, Padua, Mestre, Venice and Turin. Approximately 30% of the properties are residential apartments and 70% are commercial buildings, including offices, retail and parking.

“The San Paolo IMI portfolio fits perfectly with our investment strategy to acquire office, retail and commercial buildings in main European cities. We are delighted to acquire the portfolio and we believe that our proactive approach to asset refurbishment, repositioning and sales will enable us to manage this portfolio effectively,” said Guido Audagna, Managing Director, The Carlyle Group.

Carlyle plans to sell a selection of the fully long-term leased properties in the next year as a portfolio and also plans to execute minor works and refurbishment on a number of the properties.

Dr. Karl Petrikovics, CEO of IMMOFINANZ said, “We believe that this portfolio acquisition will be a highly successful investment. Italy is a key country in our overall strategy to build a leading position in our home market, which also includes Austria, Germany, Switzerland and some neighbouring countries in Central Europe. We are pleased to team with Carlyle on this significant investment and believe that the Carlyle team will be able to manage this portfolio to generate the best value for us as investors.”

The Carlyle Group has made the investment from its Carlyle Europe Real Estate Partners fund. Excluding the San Paolo portfolio, the team has completed 22 investments comprising more than 50 properties located in France, Italy, Germany, Denmark, Belgium and the UK. In 2003, Carlyle also acquired the Jupiter portfolio in Italy from Ministero dell’Economia e delle Finanze for €230 million.

IMMOFINANZ has invested in the deal through its subsidiary IMMOWEST. The company is headquartered in Austria, listed in the prime market on the Vienna Stock Exchange and Europe’s real estate company with the broadest diversification. IMMOFINANZ has invested in 905 properties, covering a total area of 3.541.370 square metres, representing a total fair value of more than €3 billion. The company’s equity capital amounts to €1.407 million.

The consortium’s financial adviser on the transaction was Lehman Brothers and legal advice was provided by Clifford Chance. Financial and tax advisor was DLA&Partners, while evaluation and technical due diligence was provided by Patrigest.

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