SPNV Spazio

    RNS Number : 0337K
  Spazio Investment NV
  12 December 2008
   
    SPAZIO ANNOUNCES BUSINESS UPDATE

    
Amsterdam, 12 December 2008 - In the announcement of its interim results on 10 September 2008, Spazio Investment N.V. ("Spazio" or the
"Company") the owner of 100% of the units of the Fund Spazio Industriale (Spazio and the Fund together, the "Group") confirmed its plan to
dispose of up to EUR140m of assets in the year to 31 December 2008. In the period to 30 June 2008, the Company sold EUR56.9m of assets. The
intensifying global financial crisis in the period since we announced our accelerated business plan in September has impacted on the ability
of the Company's external manager, the Group Pirelli & C. Real Estate, to effect further sales. This reflects a more general transaction
freeze in the Italian real estate market from all major real estate operators. The Company now expects to complete limited sales in the
second half of 2008 and expects sales in the full year to be around EUR70m, 50% of the originally announced  target and to return up to
EUR25m in capital to shareholders in January 2009 by way of a tender offer as described below.

Despite current economic conditions, there continues to be a good level of interest in the Group's property portfolio from local investors.
The Company has received letters of intent for approximately EUR100m of the Company's assets from potential purchasers during the second
half of 2008. The Board remains confident that it will be able to achieve its longer term target of asset disposals by 31 December 2011. The
phasing of these disposals will remain dependent on overall market conditions.

    As a result of the lower than expected level of sales in the second half of 2008, the Board no longer expects to meet its target of a
10% increase in total dividends paid in 2008 compared with total dividends paid in 2007. Dividend distributions are derived from regular
rental income and profits realised on asset disposals. Whilst the element of the dividend derived from rental income is expected to remain
consistent with the previous year, the lower level of asset disposals means that this element of the total dividend payments will be below
target. The Board now expects to pay total dividends for 2008 of up to EUR22m (of which EUR16.2 has already been distributed to shareholders
as an interim dividend in October 2008).

    In addition to the 2008 dividend distributions, the Company is planning a capital return of up to EUR25m to shareholders by means of a
tender offer in the first half of January 2009. Further details and terms of the tender offer will be released in early January 2009.


     -- ENDS --


    Enquiries
    Spazio Investment N.V.
    Fabrizio Lauro                                       Tel: +39 02 6442 50844

    Deutsche Bank
    Nominated Advisor
    Ben Lawrence                                      Tel: +44 (0)20 7545 8000

    Press Enquiries 
    Brunswick Group LLP
    Justine McIlroy                                     Tel: +44 (0)20 7404 5959
    Roberta Governale



    Notes to Editors 

    Spazio Investment N.V. 

    Spazio Investment N.V. is a Dutch based externally managed company focused on the Italian industrial real estate market - the second
largest in Europe.  

    It owns the largest portfolio in the sector, through Spazio Industriale, a closed end Italian real estate fund managed by Pirelli RE
SGR. With an overall OMV of approx EUR728.6m as at 31 December 2007, the portfolio included an attractive combination of:

    *     398 income-producing assets with high quality tenants; OMV of approx EUR604m
    *     2 high-profile development projects:
    *     Edificio16 - Refurbished industrial historical building located in Milan; OMV of EUR30.9m
    *     Eastgate Park - Largest integrated industrial park in North-East Italy, located in Portogruaro (Venice); OMV of EUR77.9m
    *     16 vacant assets under conversion/disposal; OMV of EUR15.8m  
    Spazio's corporate, investment, asset management and specialized real estate services are provided by Pirelli RE Group through an
experienced and dedicated management team.

    Spazio Investment started unconditional trading on the AIM market of the London Stock Exchange in October 2006.  



This information is provided by RNS
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