The Executive Committee of Aedes S.p.A. has approved guidelines for reorganising the Group's operations in order to be presented to the Board of Directors which will be held on August 4, 2005.
This reorganisation, already partly underway, is in line with the 2005-2007 industrial plan recently approved and aims at achieving the following goals:
- completing the current strategic process for transforming from being a property company to a fund investor and asset management company;
- reorganising of the company's activities, separating them by using functional criteria provision of property services, trading activities, development activities, investment in property, joint ventures and in real estate funds;
- preparing the group to become international, in order to diversify the Group's investments and areas of activity in the territory.
The real estate services will be provided through the Group's companies: Aedes Servizi, Aedes Project and Aedes Agency. Trading will be done through Aedes Trading Srl, an Italian company subsidiary to Aedes S.p.A., in which will be concentrated the properties mainly for residential and mixed use of which the Group's trading is constituted.
In order to rationalise development and to help coordinate the technical and financial side of projects underway, a new company is due to be founded Aedes Sviluppi Srl controlled by Aedes SpA, which aggregates all the equity investments in companies involved in construction that sell completed properties.
According to the restructuring project, the investments in shares of real estate funds will be concentrated in the Luxembourg subholding Aedes Luxembourg SA. Since 2003, the company has already held an investment in the Luxembourg fund Logistis II which invests in property used for logistics purposes in France, Spain and Italy.
In order to speed up the process of transfer of the properties, currently directly or indirectly held by Aedes, into real estate funds, the bridging companies, owning specific portfolios due to be used for the contribution to real estate funds, will be transferred to Aedes Luxembourg.
With the aim of creating an international investment platform, which will therefore permit a gradual entry into foreign markets, the rationalisation process provides for the activity of investing in rental properties to be conducted through real estate companies local to the properties, and that these property companies are coordinated and REAG engaged to update the assets evaluation to 30 June 2005 strategically managed by the Luxembourg sub-holding Aedes Developpement SA.
The Executive Committee also approved appointing REAG, American Appraisal, for evaluating the real estate assets of the Group to 30 June 2005. The purpose of this update is to define an evaluation in line with the assumptions perimeters of the funds and JVs set out by the new industrial plan, which allows a better comprehension of the company value also for the market.