Pirelli RE currently operates in four other countries apart from Italy: Germany, Poland, Romania and Bulgaria. Its presence in these markets is based on an innovative international organization model, involving uniform product lines, directly controlled operating platforms for asset management and specialized services and minority stakes in joint investments with major international investors. The goal is to become market leader in these countries, by capitalizing on its key success factors – ability to provide sophisticated advisory, asset management and specialized services – and on its partnerships with important local players.
In Germany Pirelli RE is now positioned as one of the principal market players. This is the result of important joint investments devised and promoted by Pirelli RE in partnership with major international investors, in order to secure the management of quality real estate portfolios with a minority investment, in accordance with its usual model: in DGAG - Deutsche Grundvermögen AG - one of Germany’s leading real estate companies - whose residential portfolio was acquired by the joint venture between Pirelli RE (35%) and RREEF of the Deutsche Bank Group (65%), and whose commercial portfolio was acquired by the joint venture between Pirelli RE (30%) and MSREF of the Morgan Stanley Group (70%); and in BauBeCon - another important German real estate group mostly active in the residential segment – in partnership with the real estate funds of RREEF (which own 60% of the portfolio, with the other 40% held by Pirelli RE) Pirelli RE has also set up a joint venture with HSH Nordbank, one of Germany’s principal banks, giving birth to Pirelli RE Asset Management GmbH (80% Pirelli RE, 20% HSH Nordbank) and a consortium comprised of RREEF, GREF (Generali Group ), Borletti Group and Pirelli RE has signed a binding agreement with Karstadt Quelle AG (Arcandor Group) to acquire its 49 per cent stake in Highstreet, the investment company that owns the majority of the German department store premises.
www.pirellire.de
In Poland, Pirelli RE operates through Pirelli Pekao Real Estate, resulting from the acquisition of Pekao Development in 2006 and owned by Pirelli RE (75%) and Bank Pekao SA – Unicredit Group (25%). The company has quickly become one of the principal asset managers and service providers in Poland, with around 80 employees who manage multiple residential property development projects mainly in the cities of Warsaw and Gdansk, for a total of approximately 400,000 sqm and an estimated value of the finished buildings of over 791 million euro. Pirelli RE and Cypress Grove International, a private equity real estate fund managed by affiliates of Grove International Partners, have established a joint venture (60% Grove and 40% Pirelli RE) which owns the assets managed by Pirelli Pekao Real Estate and intends to continue investing in Poland’s residential sector.
www.pirellipekaore.com
The expansion into New Europe has continued with two new joint venture agreements between Pirelli RE and the UniCredit Group in Romania (80% Pirelli RE – 20% UniCredit Tiriac Bank) and Bulgaria (75% Pirelli RE– 25% UniCredit Bulbank), with which the Group plans to replicate the successful model already adopted in Poland.