THE VALUE OF THE TRANSACTION IS APPROXIMATELY 177 MILLION EURO, WITH A GROSS CONSOLIDATED CAPITAL GAIN OF APPROXIMATELY 85 MILLION EURO
THE OPERATION WILL HAVE A POSITIVE IMPACT ON TELECOM ITALIA GROUP FINANCIAL DEBT OF APPROXIMATELY 177 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, its subsidiary Olivetti Multiservices on 29 December 2005 concluded the transaction of a tranche of 246 properties to the closed-end fund denominated Spazio Industriale.
Units in the Spazio Industriale fund were sold to institutional investors headed by The Cypress Grove International Funds, and participated with a minority stake by Pirelli & C. Real Estate.
The value of the transaction is approximately 177 million euro, with a gross capital gain of approximately 85 million euro.
The transaction will have a positive impact on the consolidated financial debt of the Telecom Italia Group of approximately 177 million euro, before tax.
Milan, 29 December 2005