Pirelli RE geography based restructure

The board of directors at Pirelli RE has reviewed and approved actions for further reorganisation of the company as part of a restructuring. They are responding to the changed scenario and prospects for the real estate sector.

European alternative asset manager Pirelli Real Estate has approved a new organisational structure, based on two macro areas, Italy and Germany. The latest move comes in response to the recent fall in real estate valuations, and is part of a restructuring process which was started in September.

The aim of the reorganisation is to accelerate the relaunch of the company by focussing on growth of Italian and international core business, putting emphasis on the quality of the real estate assets, according to a press statement.

The Italian sector will be headed by Rodolfo Petrosino and the German arm will be managed by Paolo Bottelli, both of whom will report to executive deputy chairman Carlo Puri Negri.

Claudio De Conto has been appointed chief executive officer to supervise the finances and direction of a specific mandate in line with the restructure. The existing general manager for finance and human resources of Pirelli RE, Gerardo Benuzzi, will now report to De Conto.

“We believe this further rationalisation and simplification will allow us to manage the assets in our portfolio with greater efficiency, improve financial flows and to accelerate growth,” Carlo Puri Negri, said in a statement.

Pro rata aggregate revenues amount to €938 million ($1.2 billion) compared with €982 million at 30 September 2007. The restructuring plan was announced in the interim financial report in March, and is intended to save more than €30 million in 2009.

This week PERE reported that Spazio Investment, Europe’s second largest industrial property company, had only sold half the assets it had hoped to despite having said in September it would sell €140 million worth by the end of the year. Pirelli is the second biggest individual shareholder in Spazio, which along with private equity real estate firm Cyprus Grove, took Spazio public. Spazio is planning to divest a total of €450 million worth of assets over the next three years as it seeks to restructure its balance sheet.