Telecom Italia: continues process of real estate disposals announced on 21 december 2005, third tranche of properties sold to the Raissa fund

06/29/2006 - 00:00 PM

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THE VALUE OF THE TRANSACTION IS APPROXIMATELY 47 MILLION EURO, WITH A GROSS CONSOLIDATED CAPITAL GAIN OF APPROXIMATELY 18 MILLION EURO

THE OPERATION WILL HAVE A POSITIVE IMPACT ON TELECOM ITALIA GROUP FINANCIAL DEBT OF APPROXIMATELY 36 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 on 21 December 2005 by the Board of Directors, Olivetti Multiservices, a 100% controlled subsidiary of Telecom Italia S.p.A., today concluded the transaction of a third tranche of 57 properties to the closed-end fund denominated Raissa.

The value of the transaction is approximately 47 million euro, with a gross capital gain of approximately 18 million euro.

The transaction will have a positive impact on the consolidated financial debt of the Telecom Italia Group of approximately 36 million euro, before tax.

The value of the transactions, that took place on 28 December 2005 and on 29 March 2006, was approximately 486 million euro for the first and approximately 158 million for the second.

The real estate disposals to Fondo Raissa, previously estimated to end in June 2006, will be executed by the end of December 2006.

Units in the Raissa fund were sold to institutional investors headed by The Morgan Stanley Real Estate Funds. Pirelli & C. Real Estate also has a minority participation in Raissa through a joint venture with the Morgan Stanley Real Estate Funds.

 

Milan, 29 June 2006