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Prelios to spin-off real estate arm

The real estate investment business of Italian asset management firm Prelios Group is to be separated from its fund management and asset management services.

Milan-based asset management firm Prelios Group is spinning off its real estate investment unit from its asset and fund management business lines.

The board of directors at the firm, which was formerly Pirelli Real Estate, approved the spin-off which will see Prelios' real estate investments and co-investments transferred to a separate special purpose vehicle named Centauro.

The shareholding of Centauro includes UniCredit, Intesa SanPaolo, Pirelli and, with a minority stake, Prelios which will subsequently sell down its stake.

The spin-off is going ahead so that Prelios can focus on developing the asset management and service businesses, as it looks at repositioning itself as a pure management company, the firm said.

Back in 2010, Pirelli split the real estate business from the main tyre manufacturing arm of Pirelli, which accounts for most of the group's profits. The restructuring of the firm was designed to make Pirelli Real Estate more “appealing” to possible takeover bids, the company said at the time.

Prelios has some 500 professionals and manages assets worth approximately €5.4 billion, including €5.2 billion of real estate assets and €200 million of non-performing loans. Prelios has been listed on the Italian Stock Exchange since 2002.