Pirelli RE and Merrill Lynch International, via its Global Principal Investments business unit, which already has around €1.5 billion of capital invested in European real estate and related assets, have signed a binding agreement to set up a joint venture - with Merrill Lynch and Pirelli RE respectively contributing 65% and 35% of the equity capital - in order to invest in Italian resorts and hotels up to a maximum of €1.5 billion in 5 years.
By combining Pirelli REs asset management expertise with Merrill Lynchs experience as a global financial services provider, the JV aims to play a leading role in Italys resort and hotel sector, which offers high growth and development potential.
The new agreement represents Pirelli REs fifth partnership with major financial international players for opportunistic investments in different segments of the Italian real estate market- light industrial/logistic, residential, retail & entertainment, office and resort and hotel sector- based on the Companys proven business model that involves co-investment with significant minority stakes in the initiatives undertaken, combined with the provision of fund management, asset management and services.
Source: Pirelli RE
