Pirelli and Fimit consider merger

Pirelli Real Estate is to evaluate the feasibility of merging with Milan real estate fund manager Fimit as its parent company focuses on its core tyre business

Milan-based real estate fund and asset management firm, Pirelli Real Estate, could be merged with Rome-based fund management platform, Fondi Immobiliari Italiani (Fimit), after the two organisations announced they would undertaken a feasibility study on the matter.

They said the study would evaluate the feasibility of merging the two businesses over “the next (few) weeks”.

The organisations said the study is aimed at evaluating the “integration of industrial activities by Pirelli RE and Fimit giving rise to a new (operation) in the field of asset management and real estate services.”

A new business would we see a merger of Pirelli’s platform, which in June this year had €15.1 billion of assets under management, of which €3.9 billion is owned by Pirelli, with Fimit’s platform, which in June had €4.1 billion of real estate under management across a series of funds.

A merger would coincide with the wider strategy of Pirelli Real Estate’s parent company Pirelli & C SpA, which said it planned to focus on its core tyre operation. According to a report by Reuters, analysts had previously speculated the tyre operation could be spun off from the firm’s real estate platform and its other units.