Pirelli RE to raise stake in Germany's DGAG

Pirelli RE has completed the purchase of 96.83% of Deutsche Grundvermoegen (DGAG), and said it intends to buy a further 2.54% in the German company, through an agreement with the entrepreneurs Abert Buell and Cornelius Liedtke. The total investment by Pirelli in the property group comes to EUR 465 mln.

Pirelli RE has completed the purchase of 96.83% of Deutsche Grundvermoegen (DGAG), and said it intends to buy a further 2.54% in the German company, through an agreement with the entrepreneurs Abert Buell and Cornelius Liedtke. The total investment by Pirelli in the property group comes to EUR 465 mln.

The Italian company added that by the end of 2007 DGAG's portfolio of residential properties, worth EUR 1.04 bln, will be sold to a joint venture 35 % owned by Pirelli RE and 65% by the fund of Deutsche Bank AG unit's RREEF.
In addition, DGAG's EUR 275 mln portfolio of commercial property will be trasferred to a joint venture owned at 30% by Pirelli RE and 70% by funds managed by the investment bank Morgan Stanley.

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