17 December 2007 – Milan – GE confirms its commitment to the Non Performing Loans sectors in Italy by acquiring, through its subsidiaries GE Real Estate Italia and GE Corporate Financial Services (“GE”), and in partnership with Pirelli RE/Calyon, a portfolio of non-performing loans originated by Banca Antonveneta and Interbanca. With a gross book value of approximately €2.6 billion, the deal is the second largest of its type in Italy; GE is the majority stakeholder with the 50% stake, with the remainder being held by the joint venture Pirelli RE/Calyon.
The acquisition represents the second tranche of a portfolio on which GE and Pirelli RE signed an exclusive mandate with ABN Amro at the end of last year. The first part of the portfolio had a book value of circa €1 billion. The portfolio comprises over 20,000 loans covering a wide range of mixed commercial, corporate and real estate assets across Italy. Pirelli RE will service the portfolio and act as asset manager.
The transaction represents GE’s third acquisition of a non-performing loan (NPL) portfolio in Italy over the last 18 months, and as a result of today’s announcement, GE will have a total exposure of over €5 billion of gross book value in loans. GE’s first transaction was the acquisition of a €1.8 billion (gross book value) portfolio from Unicredit Group in Spring 2006, followed by the €1 billion (gross book value) acquisition from Banca Antonveneta with Pirelli RE in January 2007.
The combination of these acquisitions firmly establishes GE as a leading investor in the non-performing loans sector in Italy. The transactions have enabled GE to broaden their past experiences from classic real-estate ventures into a strong partnership in the non-performing loans sector.
Olivier Piani, President of GE Real Estate Europe commented: “This transaction is evidence of our commitment to grow our NPL business and our proven ability to execute large deals even in more unsettled markets. We are actively seeking to acquire more restructuring portfolios in Italy and throughout Europe, particularly in the commercial sector, and help financial institutions manage their risk.
“In a time of market uncertainty, GE Real Estate, backed by GE’s AAA rating, remains a purveyor of liquidity to the financial services industry as demonstrated by the acquisition of approximately €3 billion of performing commercial property loan from Bradford & Bingley PLC in the UK, last month.”
Giuseppe Recchi, President and CEO for GE in Italy and South East Europe, commented on the transaction: "We are very pleased to have concluded this deal with our two partners, Pirelli RE and Calyon, demonstrating the strength of our partnership and shared ambitions for growth. This transaction is part of GE’s renewed commitment to be a long term and permanent player in the Italian market with all its divisions, and we look forward to further opportunities for growth within both the financial and manufacturing sectors where we are active. "
Press Contact:
Financial Dynamics
Stephanie Highett/
Dido Laurimore/
Jamie RobertsonTel: +44 20 7831 3113
Close to Media
Francesca Valagussa/
Anna CavallarinTel: +39 02 7000 6237
About GE
GE (NYSE: GE) is Imagination at Work -- a diversified technology, media and financial services company focused on solving some of the world's toughest problems. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content and advanced materials, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit the company's Web site at
www.ge.com.
GE Real Estate (
www.gerealestate.com) is one of the world's premier commercial real estate companies with more than US$72 billion in assets and a presence in 31 countries throughout North America, Europe, Asia, and Australia/New Zealand. Backed by GE's AAA rating, GE Real Estate offers a comprehensive range of capital and investment solutions including equity capital for acquisition or development, as well as fixed and floating rate mortgages for new acquisitions or re-capitalizations of commercial real estate. With a 28% compound annual growth rate since 1993, GE Real Estate is one of the world's fastest growing and most profitable real estate enterprises. This extraordinary record of success grows out of a reputation for collaboration and partnership; a depth of knowledge and experience and a history of building relationships, finding opportunities and opening doors for more than 5,000 owners, builders, borrowers and brokers worldwide.
GE Commercial Finance (
www.gecommercialfinance.com) offers businesses around the globe an extensive array of financial products and services. With more than US$276 billion in assets and expertise in the middle-market, GE Commercial Finance provides loans, operating leases, financing programs and innovative structured capital to help customers grow. Headquartered in Norwalk, Connecticut, GE Commercial Finance is a wholly owned subsidiary of the General Electric Company (NYSE:GE), a diversified services, technology and manufacturing company with operations worldwide.
