Goldman poised to win Berenice bidding war

Pirelli is reportedly giving the nod to Goldman Sach’s €913-per-unit bid for Italian office portfolio Berenice.

Italian conglomerate Pirelli is recommending that unitholders in the Berenice property fund accept Goldman Sachs’ offer for the Italian office portfolio. The bid values the fund at approximately €548 million ($751 million).

The Berenice fund is comprised of office assets, largely located in Rome and Milan. 

Through Zwinger Opco, a special purpose vehicle set up by Whitehall, Goldman Sachs’ private equity real estate vehicle, the US investment bank offered to pay €913 per unit of the fund last week, with plans to buy 95 percent of the vehicle.

Merrill Lynch’s latest offer was €827 per unit, made via international investment fund Galante.

Prior to the recent spate of bids between Goldman and Merrill Lynch, Gamma RE, a joint venture between Pirelli Real Estate and the Morgan Stanley Special Situations Fund, also entered the fray with a bid of €685 per unit.

The most recent offer from Goldman is conditional on Pirelli not going through with the proposed disposition of five of the fund’s assets, which have a reported value of €261 million.

Approximately a quarter of the Berenice portfolio is rented to Telecom Italia and 85 percent of the property is located in the cities of Milan and Rome.