Bank of Italy has granted authorization to Beni Stabili, the leading property company in the Italian real estate sector, to set up the Italian Real Estate SICAF to which the Group will contribute all of its Telecom Italia portfolio (€1,543m, based on the appraisal values established at the end of June 2016) along with the associated debt (€810m).
Beni Stabili will keep 60% of the share capital of this new regulated investment vehicle, while two major international investors, Crédit Agricole Assurances, and EDF Invest, the investment division of the EDF Group, will each acquire from Beni Stabili a 20% stake in the SICAF. The SICAF shall be incorporated in Q1 2017. As a reminder, this landmark transaction, of which the terms have been set up in November 2016, confirms the appeal of Italian real estate for long-term international investors and constitutes a key stage in the strategy initiated by Beni Stabili at end-2015:
- Diversifying further its tenant base. Four years ahead of its 2020 goal, Beni Stabili almost achieves its tenant diversification target with a Telecom Italia exposure, that will be 28% of its portfolio after the SICAF operation and provide with a good balance between prime offices and TI solid and long-term cash-flows. When Beni Stabili announced its strategic targets with its FY 2015 results, it had 41% of its portfolio in value rented to Telecom Italia.
- Strengthening capital structure. After this transaction, which represents an equivalent of around €620 million of Telecom Italia assets, the LTV will be below 45% vs 50% at end-June 2016.
- Increasing its exposure in Milan, with 58% of the portfolio vs 51% at end-June 2016 and a 80% target by 2020.
