Apollo Global Management has been awarded the package of 68 properties directly owned by Enpam (National Insurance and Medical Assistance Body), called Project Dream. MF Milano Finanza writes, adding that the value of the transaction is over 800 million euros. This is however a figure well below the 1.077 billion euros value calculated by Duff & Phelps REAG spa in November 2019, as recalled in Enpam’s FY 2020 final balance sheet (see here a previous article by BeBeez).
Apollo was assisted in the auction by Lazard and the law firms Bonelli Erede and Belvedere Inzaghi. Enpam was instead supported by Deloitte. The auction for Project Dream was also attended by: Torre sgr together with Guglielmo Tabacchi with its 2G Investimenti, Bain Capital, Davidson Kepmner Capital (controlling shareholder of Prelios) and Gwm-DeA Capital (see here a previous article by BeBeez).
Project Dream, which totals an area of one million square meters, had been put on the market at the beginning of 2020 (see here a previous article by BeBeez), but the coronavirus pandemic had led to the postponement of the sale. The auction was then restarted at the end of July 2020, with the aim of defining the buyer by the end of the year (see here a previous article by BeBeez). The timetable has been stretched a little bit more then.
We recall that the Project Dream portfolio consists of the entire direct real estate portfolio of Enpam, with the exception of residential buildings in the Municipality of Rome, for which a sale process is in place to the various tenant cooperatives, and with the exception of the three hotels in the center historic Rome (Hotel Raphael, Hotel delle Nazioni and Hotel Palazzo Navona) which are considered strategic.
Regarding the process of selling the residential assets in Rome, this began in June 2013 and since then has involved 56 real estate complexes with a book value of over 543.3 million euros for a total of 4,540 residential real estate units. over appurtenances, and for a total of 255 units for use other than residential (offices, shops, warehouses, collective garages, etc.). Also in Enpam’s 2020 advisory budget, we read that “in the last session of the Foundation’s Board of Directors, on 17 December 2020, the acceptance of the irrevocable purchase offer of the Cooperative in Via Artom 95 was approved; with this resolution, the acceptance process of the offers of all the accredited cooperatives and, therefore, of all the residential assets of Rome was concluded. During 2020, the asset sale process, interrupted in the first half due to the Covid-19 pandemic, was restarted in August and led to the sale by the end of the year of 12 real estate complexes for a value of approximately 140 million euros and a capital gain of over 50 millions”.
With regard to other private capital investments, the Enpam FY 2020 final balance sheet shows an overall exposure of over 402 million euros between private equity and private debt funds, up by 169 millions from 2019 following capital calls by a series of funds. In particular, around 140 million euros were called up from funds already held in Enpam’s portfolio in previous years (Advanced Capital IB, Principia III, Hamilton Lane, Pemberton European Fund, Bluebay Asset Management, Springrowth, Blackrock Crdit Opportunity, Pantheon, Schroder Adveq Europe VII, Equinbox III and Harbourvest 2019 Globa) and another 28.6 millions from funds subscribed by Enpam in 2020 (NB Renaissance Fund III and EIF AMUF Growth Capital). At the same time, the item in 2020 underwent a decrease of 34.6 millions due to the redemptions of shareholdings connected both to some realizations of investments by private equity funds and to the entry of new subscribers.