Pirelli RE continues to expand in Central and Eastern Europe with the launch of an activity in Romania and Bulgaria in partnership with the Unicredit Group, strengthened also by the growth of Pirelli Pekao Real Estate (75% Pirelli RE-25% Bank Pekao) in the Polish market.
The joint venture agreement for the birth of Pirelli RE Romania, 80% Pirelli RE and 20% UniCredit Tiriac Bank, was signed on Thursday 18 July, 2007. UniCredit Tiriac Bank is one of the most important players on the Romanian banking market, with total assets of €3.7 billion, over 600,000 customers and 138 branches.
A similar agreement to be signed for the creation of Pirelli RE Bulgaria regards a 75% Pirelli RE-25% UniCredit Bulbank joint venture. UniCredit Bulbank is the main financing institution within Bulgaria, with total assets of about €3.8 billion, over 1 million clients and about 300 branches.
Through the implementation of its own business model and together with both UniCredit Tiriac Bank and UniCredit Bulbank Pirelli RE Groupâs goal is to become a leader in the Bulgarian and Rumanian markets, offering quality, design conscious, and ecosustainable real estate products.
The two joint ventures will focus, on the one hand, on the development of local asset management platforms and specialized services and, on the other, on attracting investment capital from primary foreign financial players in order to co-invest in the different real estate sectors with a particular focus on residential development projects. The investment of both Pirelli RE and UniCredit Tiriac Bank/UniCredit Bulbank in the real estate projects and the asset management activities will guarantee aligned interests.
Pirelli RE Romania and Pirelli RE Bugaria will manage and develop areas and properties, supplying specialized services to both its own portfolios and those of third party clients; Pirelli RE has a call option to grow to 100% of service activities which be integrated into a local service company, when an adequate business volume is reached. The customers of the two companies will have easier access to the financial services offered by UniCredit Tiriac Bank and UniCredit Bulbank.
Each companyâs strategy will be defined by a Supervisory Board comprised of five members: Pirelli RE Romaniaâs Board will be comprised of Carlo A. Puri Negri, Olivier de Poulpiquet and Enrico Signori of Pirelli RE and Rasvan Radu and Marco Cravario of the Rumanian bank, while the Board in Pirelli RE Bulgaria will include the same representatives of Pirelli RE along with Hampartzoumian Levon and Andrea Casini from the Bulgarian bank. The respective Management Boards will be responsible for implementing the strategies.
Chiomenti Studio Legale acted as legal counsel to Pirelli RE, together with Salans for Rumenia and Djingov, Gouginski, Kyutchukov & Velichkov for Bulgaria.
Source: Pirelli RE
