Beni Stabili SpA SIIQ was given the green light by the Bank of Italy to set up an investment fund to manage its Telecom Italia SpA portfolio.
The fund will hold Telecom Italia's approximately €1.54 billion portfolio and €810 million in associated debt. The Italian REIT will own 60% of the fund, while international investors Crédit Agricole Assurances SA and EDF Invest, the investment division of the EDF Group, will each acquire a 20% stake.
With the new investment fund, Beni Stabili will be able to diversify its tenant base by lowering its Telecom Italia exposure to 28% from 41%. Following the creation of the fund, the company's loan-to-value ratio will fall to 45% from 50%, while its exposure to Milan will increase to 58% from 51%, as at the end of June 2016.
Beni Stabili, the Italian subsidiary of French hotelier Foncière des Régions, targets to increase its portfolio exposure to Milan to 80% by 2020.