Telecom Italia: Continues real estate disposals already announced on 21 december 2005, last tranche of properties sold to the Raissa Fund

12/14/2006 - 00:00 PM

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TELECOM ITALIA CONTINUES REAL ESTATE DISPOSALS ALREADY ANNOUNCED ON 21 DECEMBER 2005, LAST TRANCHE OF PROPERTIES SOLD TO THE RAISSA FUND

THE VALUE OF THE TRANSACTION IS APPROXIMATELY 30 MILLION EURO, WITH A CONSOLIDATED GROSS CAPITAL GAIN OF ABOUT 11 MILLION EURO

POSITIVE IMPACT OF TOTAL DISPOSALS TO RAISSA FUND ON GROUP CONSOLIDATED FINANCIAL DEBT CIRCA 570 MILLION EURO, PRE-TAX

Telecom Italia announces that today – in the context of its programme of real estate disposal for a total value of over 1 billion euro, approved by the Board of Directors on 21 December 2005 – Olivetti Multiservices, a company 100%-owned by Telecom Italia SpA, transferred the last tranche of 33 properties to the closed-end fund denominated Raissa.

The value of the transaction is approximately 30 million euro, with a consolidated gross capital gain of circa 11 million euro.

Total transactions with the Raissa fund have had a positive impact of Group financial debt of approximately 570 million euro, before taxes.

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

 

Milan, 14 December 2006