Presentation of the Fund

Transcription

1 Summary Report for Fund unit-holders Second Half 2008

2 Presentation of the Fund Fondo Delta is a closed-end property fund set up by the Board of Fimit SGR on 21 February 2006, with a duration of 8 years, expiring on 31 December 2014, although the SGR may apply to the Bank of Italy for an extension, if necessary, to improve the disposal of the investments and unit repayment purposes. The Fund s peculiarity lies in the fact that it specializes in investments in the tourist/hotel industry, although it is free to invest in other types of assets as well. Type of fund Closed-end fund Date of establishment 21 february 2006 Date of placement 22 december 2006 Duration Destinatari Profit distribution 8 years Retail and qualified investors Half-yearly from the 2nd year of operation, in an amount not lower of 80% of the distributable profits if fund rules requirements are satisfyed as at art. 13 Proventi della Gestione del Fondo Target Internal rate of return IRR 5% Type of real estate Overallnet valueoffundat 31 December 2008 Hotels, offices, retail, logistic and industrial properties, development projects and assets requiring requalification, refurbishment, upgrading, improvement or restoration to be rent or sell with significant potential capital gains 202,807 (Euro/mln) Number of units issued Unit value of fund units at placement Unit value of fund units at 31 December 2008 Annual management fee Performance fee ,331 1,3%oftheoverallnet valueoffund assets, asreported in theyearly statements, adjusted with non-realised capital gains on real estate properties and shareholdings on real estate properties 20% of the overperformance on target IRR

3 Management activities New real estate investments In the second half of 2008, the SGR continued its scouting activities for the purpose of employing Fund s liquidity. The investment opportunity selection process was conducted, inter alia, by means of: contacts with prime domestic and foreign operators owning hotel properties (or hotel portfolios), also through special purpose vehicles (SPVs); contacts with operators owning hotel properties, directly or through SPVs, in prime tourist locations; the monitoring of public and private auctions, also with respect to repossessed properties, with a special focus on tourist developments and hotel properties. Since the establishment of the Fund, the SGR has scouted properties worth approx. 1.6 bn euros. In connection with the scouting activities, non-binding offers have been submitted totalling approx. 491 million euros, as well as binding offers for approx million euros. The latter bids, however, have been turned down by the owner. Value enhancement of current real estate assets At 31/12/2008, refurbishment projects of the Calaserena Village resort, for m euros, were completed. The works primarily concerned the interior and the facades of the two buildings of the resort. With regard to the Forte Village Resort, capital expenditures totalling m euros have already been carried out; Fondo Delta s share is 50% the amount, i.e m euros. Lastly, as regards the Grand Hotel Ambasciatori, the first preliminary surveys have been carried out namely, the architectural, engineering and plant/system surveys with a view to kick-starting revenue generation. Stock Exchange listing On 24 February 2009, following the listing application filed by Fimit on 23 October 2007, Borsa Italiana S.p.A. authorized the admission of the Fund units to the MTF Segment Class 2 Close-end funds (now MIV) of Borsa Italiana. The Fund launched negotiations on the market on 11 March 2009.

4 Performance highlights BALANCE SHEET dec-06 jun-07 dec-07 jun-08 dec-08 Assets of which: real estate and relevant beneficial rights Liabilities of which: loans Net asset value (NAV) INCOME STATEMENT dec-06 jun-07 dec-07 jun-08 dec-08 Investment management results of which: property rents and other revenues of which: capital gains/losses Gross results of typical operations Financial expenses Management costs Other revenue and expenses Tax Profit and loss for the year Reference Value Number Unit period of Fund of units value Opening value of Fund ,000 Financial statements at 31/12/ ,028 Financial statements at 31/12/ ,492 Financial statements at 31/12/ ,331

5 Real estate asset allocation Breakdown by geographical area Breakdown by type of investment 23,4% 6,5% 23,4% 63,20% 13,3% 13,3% 63,2% 93,5% Balance sheet breakdown Assets 9,91% Islands Centre South 0,05% Core Value Added Liabililities 0,67% 11,84% 78,20% 99,33% REAL ESTATE ASSETS AND REAL PROPERTY RIGHTS LIQUIDITY OTHER ASSETS OTHERS LOANS PAYABLE AND OTHER LIABILITIES

6 Our portfolio Purchases Purchase of three hotel properties from Bluserena On 1 March 2007, Fondo Delta purchased from Bluserena S.p.A. three hotel properties located in Maracalagonis (CA), Montesilvano (PE) and Cutro (KR), respectively. The transaction should be viewed in relation to the project of investments into average to luxury hotels and resorts in prime tourist locations, featuring an entry yield of 6.5%. The Fund then simultaneously let the properties back to Bluserena S.p.A., under three separate leases, under which the Fund has also accepted to carry out refurbishment works for upgrading the properties to standard, for an annual rent increase of 6.5% the amount of the improvement works, for which the Fund has earmarked a total of 10 m euros. Joint investment, with other Funds managed by SGR, in the Forte Village Resort hotel development On 26 June 2007, Fimit SGR, acting on behalf of the managed funds Delta Immobiliare, Beta Immobiliare and Gamma Immobiliare, purchased from Sardegna Property S.r.l. the Forte Village Resort hotel development, located in Santa Margherita di Pula (CA). The interest acquired by each Fund in the property is as follows: Fondo Delta: 50% Fondo Beta: 27% Fondo Gamma: 23%. The related lease provides that the ownership shall grant the tenant an 18 m euro financial contribution, for the purpose of carrying out refurbishment, improvement and extension or ordinary maintenance works, on the property, by 31 December Purchase of the Grand Hotel Ambasciatori in Bari Fimit SGR purchased the Grand Hotel Ambasciatori, at an auction by court order following bankruptcy, bidding up by one fifth. The property purchased by Fondo Delta by virtue of the transfer order issued by the Court of Bari on 19 March 2008 and the notarial survey deed of 5 June 2008 is currently vacant (except for a lease relating to a telephone repeater installed on the roof). Besides handling certain legal claims relating to the bankruptcy proceedings, the SGR has launched preliminary activities for the value enhancement of the property, aimed at kick-starting revenue generation.

7 Our portfolio - The Forte Village Resort The Forte Village Resort is a four and five-star luxury resort, comprising hotels and bungalows, set in green surroundings amidst maritime pine woods. The resort is open eight months a year, from March to October, and covers an area of approx. 46 hectares. Alongside the hotels, the resort features a large array of sports and leisure facilities, restaurants and other amenities. In particular, the sports facilities are scattered throughout the resort. There are five exclusive restaurants attached to the hotels, and another eleven dedicated restaurants serving traditional and international cuisine, for a total of 2480 covers. Then there are five snack points open for lunch and eleven bars, all located within the perimeter of the resort. : The resort is located at Santa Margherita di Pula, near Pula, in the province of Cagliari. Occupancy: The resort is entirely let to Mita Resort Srl, under a lease expiring on 31/12/2016, after which the tenant may choose to renew the lease for another ten years, subject to at least 12 months notice. Number of rooms Lease expires on Total rents (31/12/2008) Sardegna S. Margherita di Pula Monotenant Interamente Locato /12/

8 Our portfolio Other realty Abruzzo Montesilvano Monotenant Fully let Number of rooms 508 Lease expires on 28/02/2017 Total rents (31/12/2008) Number of rooms Total rents (31/12/2008) Puglia Bari Pluritenant Partially let Number of rooms Lease expires on Total rents (31/12/2008) Sardegna Maracalagonis e Quartu S. Elena Monotenant Fully let /02/ Calabria Cutro (Marinella di Cutro) Monotenant Fully let Number of rooms 484 Lease expires on 28/02/2017 Total rents (31/12/2008)

9 Strategy & Outlook Scope of the Fund is the collective investment of capital in real estate, real property rights and shareholdings in real estate companies and the professional management and valorisation, in order to increase the initial value of Fund units and divide amonge the unit-holders the net result deriving from the management of the investments and the relevant devestments. The prospects for 2009 are a comeback of investment dynamism, to exploit the best possible investment opportunities for the Fund. Without prejudice to the Fund Management Rules, also in consideration of the investments already made and the current allocation of the Fund s assets, the strategy guidelines the SGR for the Fund are aimed at promoting: new investments, to achieve a total asset value of approx. 350 million, resulting in an overall loan to value of below 50%; the selection of investment opportunities in assets (both hotel properties and other functional types of properties), located in the main Italian cities, and capable of increasing the Fund s portfolio diversification. In particular, in view of the achievement of the Fund s objectives, the new investments shall be aimed at: the purchase of leased properties; the purchase of properties that can be value enhanced for leasing purposes; the purchase of developable land, for subsequent building; the purchase of buildings for future refurbishment/restoration/maintenance, also changing their use if necessary; the purchase of real estate assets that can be disposed of in the short term, to exploit any market opportunities. Disclaimer This document has been prepared by Fondi Immobiliari Italiani Società di Gestione del Risparmio S.p.A. solely as a study on the development of the Fondo Beta property fund by parties with a special interest in this type of financial product. The data set out in this presentation have been extracted from the financial statements as at 31 December 2008, and other previous half-year statements, to which reference should be made for further information. The information contained in this document has not been audited by an independent body and no implicit or explicit guarantees can be provided with respect to the fairness, accuracy, completeness and precision of the information and opinions contained herein. Several parts of this presentation contain outlook statements/data which should be viewed as mere estimates and which might even significantly differ from any actual future results. Neither FIMIT SGR, nor its directors, employees, consultants or representatives can be held in any way responsible for any damage, charge or loss deriving from the use of this document, or its contents, or as a result of the use of this document, except in the case of fraud or gross negligence. The performance figures are the result of estimates made by independent expert assessors. The right to repayment can be exercised only at maturity and according to the terms and conditions of the Fund Management Rules. This document does not constitute an offer or an invitation to purchase or subscribe to units of Fondo Delta Immobiliare, nor does it constitute in any way a contract or a commitment to enter into a contract, and it cannot be used as a basis for entering into any type of contract or committing oneself to any form of undertaking. Any decision relating to investments in Fondo Delta Immobiliare shall be based exclusively on the analyses and information set out in the relevant Prospectus and not on the contents of this document. The Fondo Delta units are traded on the MIV market of Borsa Italiana S.p.A. The relevant negotiation code is QFDI and the ISIN code is IT Before purchasing any units please read the Prospectus/Listing particulars, the Rules, the financial statements and operating reports relating to the Fund. By accepting this document you agree to be bound by the foregoing limitations and/or prohibitions.