Telecom Italia: Real estate disposals announced on 21 december 2005 continue,second tranche of properties sold to the Raissa fund

03/29/2006 - 00:00 PM

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THE VALUE OF THE TRANSACTION IS APPROXIMATELY 158 MILLION EURO, WITH A GROSS CONSOLIDATED CAPITAL GAIN OF APPROXIMATELY 57 MILLION EURO

THE OPERATION WILL HAVE A POSITIVE IMPACT ON TELECOM ITALIA GROUP FINANCIAL DEBT OF APPROXIMATELY 125 MILLION EURO BEFORE TAX


Telecom Italia states that as a part of its programme of real estate disposals for a total value of over 1 billion euro, approved by the Board of Directors on 21 December 2005, its subsidiary Olivetti Multiservices on 29 March 2006 concluded the transaction of a second tranche of 210 properties to the closed-end fund denominated Raissa. (The transaction for the first tranche was concluded on 28 December 2005). 

The value of the transaction is approximately 158 million euro, with a gross capital gain of approximately 57 million euro.

The transaction will have a positive impact on the consolidated financial debt of the Telecom Italia Group of approximately 125 million euro, before tax.

Units in the Raissa Fund were sold to institutional investors headed by The Morgan Stanley Real Estate Funds, and Pirelli & C. Real Estate participated with a minority stake.

Milan, 29 March 2006