Risanamento sells Rho and Chivasso development projects to Aedes (IT)

Risanamento and Aedes have signed an agreement for the sale of two development projects located in Rho (Milan) and Chivasso (Turin). The total price is, respectively, €35 million and €15 million.

The Rho project refers to the total refurbishment of a Shopping Centre with an overall surface of approx. 17,000 sq.m. plus communal areas of which Risanamento owns 12,000 sq.m. Risanamento will be co-responsible for selling the retail units and for this reason an earn out clause in favour of Risanamento was included in the agreement. According to this clause, if specific lease targets are met by June 2007, Risanamento will receive a bonus of up to 5 million, thus bringing to total amount received for the project to 40 million. This operation, whose completion is scheduled by June 2006, will generate for Risanamento a capital gain of 19 million that could go up to 24 million thanks to the earn out clause.

The Chivasso project sold to Aedes refers to a large logistics/industrial area with an MLA of 104,000 sq.m. The sale is expected to be completed by June 2006. According to this agreement, Risanamento sells the entirety of the Chivasso development project. Risanamento had already signed an agreement for the sale of the portion with commercial use (about 36,000 sq.m. of MLA) to the Novacop Group for a price of 13.7 million. From the Chivasso project as a whole, when the agreements have been completed, Risanamento will have obtained a capital gain of 23 million.

Risanamento also signed an agreement with Aedes for purchasing 50% of Mariner, a company that owns the property located in Milan, Via Bagutta 8, with an option to buy a further 35% stake in the company by 31st January 2008. The price that Risanamento will pay is based on a reference value of the property of 89 million. The operation is expected to be completed by 30th June 2006.

The property, with a gross surface of about 10,000 sq.m., is located in one of the most prestigious areas within Milans shopping district. The plan includes the redevelopment of the property aimed at enhancing its strategic positioning by converting it into a luxury department store, with upmarket shops and restaurants, compatibly with the town-planning schemes set by the Municipality.

Risanamento and Aedes signed also a joint venture for subdivision activities, which refers to two prestigious properties in the centre of Milan. More specifically, Risanamento will purchase 50% of Immobiliare Turati (25% from Aedes, 25% from the Reit Asset Management fund), a real estate company that owns a property in Via Turati, and 50% of Aedilia 1, a company that owns a property situated in Piazza Diaz. Both properties will be subdivided and sold over 3 years from a commercial perspective. The price for the quotas is based on a reference value of 104 million for the property in Via Turati and of 94 million for the one in Piazza Diaz. Risanamento has already completed the purchase of 50% of the Via Diaz property and will complete the purchase of Immobiliare Turati by 30th June 2006.

Source: Risanamento

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