1. WALL STREET JOURNAL INTERVISTA MASSIMO CAPUTI SUI PORTAFOGLI NPL DELLE BANCHE ITALIANE Wall Street Journal - BY GIOVANNI LEGORANO - 02/07/2014 pg. 1.18 Bad Property Loans Burden Italian Banks MILAN- Italian banks are trying to unload billions of euros of distressed property loans at prices that have so far failed to lure investors.Bad loans with a face value of more than 8 billion ($10.9 billion) have been put on the block this year by banks including Banca Monte dei Paschi di Siena SpA, Uni-Credit SpA and Banco Popolare SC. Only a fraction of that amount has been purchased by the foreign privateequity funds and other investors that have expanded in Italy in search of bargains.The funds, which include Blackstone Group LP, Lone Star Investment Advisors LLC and Fortress Investment Group LLC, have been more active in other hard-hit European markets such as Spain and Ireland. That is because real- estate sales in those countries have started to gather steam, making it easier to value properties.Another factor: Many of Italy's biggest banks have set aside less than regional competitors to cover bad loans of all types, according to Morgan Stanley. As a result, selling at the highly discounted prices investors are demanding would mean painful losses at a time the banks may need to increase capital to meet tougher regulatory requirements."In recent years, Italian banks haven't written down the value of their assets as their euro-zone peers did," said Massimo Caputi, deputy chairman of Italian real-estate group Prelios. "Some banks are simply not in a position to sell those bad loan portfolios."The Italian real-

2. estate market didn't experience the boom and bust of Ireland and Spain. But a protracted downturn-national output has shrunk 10% in about six years- has depressed the sector, with residential prices dropping by 11% since 2006. Prices of office buildings and industrial property were down 7% and 21%, respectively, in 2013 compared with 2006, according to Scenari Immobiliari, a think tank.Valuations are proving to be difficult because of a decline in the number of transactions. According to national statistics institute Istat, residential and commercial-property sales have fallen by half since 2006. The drawn- out process of foreclosures and auctions in Italy also is clogging up the flow of sales.This has made it harder for banks to find comparable data as benchmarks to price their assets, especially for commercial real estate, which made up only 6% of all realestate transactions in the final three months of last year. The surge in bad loans, which have more than tripled in the past five years, also has made it tough to keep valuations up to date.That means banks are facing higher losses on bad debt than they initially had planned for, or must sell smaller portfolios than they hoped. Some are putting off or even yanking deals altogether, say investors and bank executives.For instance, investors began eyeing Release, a large portfolio of loans and properties offered by Banco Popolare and other smaller banks, early this year. Popolare has assigned a net book value of 3.2 billion to the portfolio, which includes two office buildings on the outskirts of Rome, one rented by Telecom Italia and another by Ericsson, valued at a combined 356 million. The portfolio originally had been valued at 3.9 billion. About 60% is made up of nonperforming loans.Investors who mulled or presented offers are Blackstone, Lone Star, GWM Holding, which joined with the Pacific Investment Group, and Fortress, which is teaming up with Prelios. One group said it would pay no more than 1.5 billion, according to people close to the talks.The bank's executives defend their pricing."Properties never betray you," Banco Popolare's chief executive, Pier Francesco Saviotti, told analysts in May. "When you have something that is reasonably good, you will never be let down... we don't want to sell out at a discount."Banco Popolare will now seek to sell small packages of loans and even single properties.Elsewhere, UniCredit is trying to sell its debt-collection unit together with 4.4 billion of gross bad loans; the proceeds of the sale of the debt collector are earmarked to cover losses on the debt, people familiar with the deal say.But the figures quoted for the debt have been low. A person familiar with the deal said at least one investor was considering an offer of 500 million only for the bad-loans package, or 11% its face value. 3. MASSIMO CAPUTI INTERVISTATO DAL WALL STREET JOURNAL US Wall Street Journal US 02/07/2014 pg. 2 ed. Us Bad Property Loans Stick to Italian Banks MILAN-Italian banks are trying to unload billions of euros of distressed property loans at prices that have so far failed to lure investors.Bad loans with a face value of over 8 billion ($10.9 billion) have been put on the block this year by banks including Banca Monte dei Paschi di Siena BMPS.MI +7.64% Banca Monte dei Paschi di Siena S.p.A. Italy: Milan 1.54 +0.11 +7.64% July 1, 2014 5:39 pm Volume (Delayed 15m) : 201.83M P/E Ratio N/A Market Cap 7.24 Billion Dividend Yield N/A Rev. per Employee 241,866 07/01/14 Bad Property Loans Stick to It... 06/30/14 Monte dei Paschi Will Repay 3... 06/27/14 Banca Monte dei Paschi di Sien... More quote details and news BMPS.MI in Your Value Your Change Short position SpA, UniCredit UCG.MI +2.45% UniCredit S.p.A. Italy: Milan 6.26 +0.15 +2.45% July 1, 2014 5:39 pm Volume (Delayed 15m) : 57.60M P/E Ratio N/A Market Cap 35.87 Billion Dividend Yield 1.42% Rev. per Employee 179,910 07/01/14 Bad Property Loans Stick to It... 06/30/14 Supreme Court Rejects Madoff T... 06/30/14 Is Bulgaria a Cause for Concer... More quote details and news UCG.MI in Your Value Your Change Short position SpA and Banco Popolare BP.MI +3.49% Banco Popolare S.C. Italy: Milan 12.45 +0.42 +3.49% July 1, 2014 5:34 pm Volume (Delayed 15m) : 3.69M P/E Ratio N/A Market Cap 4.36 Billion Dividend Yield N/A Rev. per Employee 289,946 07/01/14 Bad Property Loans Stick to It... 05/15/14 Intesa Sanpaolo Posts Higher F... 04/17/14 Banco Popolare's 1.5 Bln Righ... More quote details and news BP.MI in Your Value Your Change Short position SC. A fraction of that amount has been bought by the foreign private-equity funds and other investors that have expanded in Italy in search of bargains. The funds, which include Blackstone Group BX +0.42% Blackstone Group L.P. U.S.: NYSE $33.58 +0.14 +0.42% July 1, 2014 4:02 pm Volume (Delayed 15m) : 3.67M AFTER HOURS $33.58 0.00 0.00% July 1, 2014 6:26 pm Volume (Delayed 15m): 84,898 P/E Ratio 15.69 Market Cap $19.42 Billion Dividend Yield 4.17% Rev. per Employee $3,246,810 07/01/14 Bad Property Loans Stick to It... 07/01/14 United Biscuits Considers IPO 06/30/14 Pinnacle Foods Formally Termin... More quote details and news BX in Your Value Your Change Short position LP, Lone Star Investment Advisors LLC and Fortress Investment Group FIG +0.54% Fortress Investment Group L.L.C. Cl A U.S.: NYSE $7.48 +0.04 +0.54% July 1, 2014 4:02 pm Volume (Delayed 15m) : 1.51M AFTER HOURS $7.47 -0.01 -0.13% July 4. 1, 2014 4:00 pm Volume (Delayed 15m): 100 P/E Ratio 9.84 Market Cap $3.20 Billion Dividend Yield 4.28% Rev. per Employee $1,250,880 07/01/14 Bad Property Loans Stick to It... 07/01/14 LightSquared Unveils Plan Led ... 06/23/14 News Corp to Sell 11 Community... More quote details and news FIG in Your Value Your Change Short position LLC, have been more active in other hard-hit European markets such as Spain and Ireland. That is because real- estate sales in those countries have started to gather steam, making it easier to value properties.Another factor: Many of Italy's biggest banks have set aside less than regional competitors to cover bad loans of all types, according to Morgan Stanley. As a result, selling at the highly discounted prices investors are demanding would mean painful losses at a time the banks may need to increase capital to meet tougher regulatory requirements."In recent years, Italian banks haven't written down the value of their assets as their euro-zone peers did," said Massimo Caputi, deputy chairman of Italian real-estate group Prelios. "Some banks are simply not in a position to sell those bad loan portfolios."The Italian real-estate market didn't experience the boom and bust of Ireland and Spain. But a protracted downturn-national output has shrunk 10% in about six years-has depressed the sector, with residential prices dropping by 11% since 2006. Prices of office buildings and industrial property were down 7% and 21%, respectively, in 2013 compared with 2006, according to Scenari Immobiliari, a think tank.Valuations are proving to be difficult because of a decline in the number of transactions. According to national statistics institute Istat, residential and commercial-property sales have fallen by half since 2006. The drawn-out process of foreclosures and auctions in Italy also is clogging up the flow of sales.This has made it harder for banks to find comparable data as benchmarks to price their assets, especially for commercial real estate, which made up only 6% of all real-estate transactions in the final three months of last year. The surge in bad loans, which have more than tripled in the past five years, also has made it tough to keep valuations up-to-date.That means banks are facing higher losses on bad debt than they initially had planned for, or must sell smaller portfolios than they hoped. Some are putting off or even yanking deals altogether, say investors and bank executives.For instance, investors began examining Release, a large portfolio of loans and properties offered by Banco Popolare and other smaller banks, early this year. Popolare has assigned a net book value of 3.2 billion to the portfolio, which includes two office buildings on the outskirts of Rome, one rented by Telecom Italia and another by Ericsson, valued at a combined 356 million. The portfolio originally had been valued at 3.9 billion. About 60% is made up of nonperforming loans. Investors who weighed or presented offers are Blackstone, Lone Star, GWM Holding, which joined with the Pacific Investment Group, and Fortress, which is teaming up with Prelios. The investors view the Release portfolio as overvalued, with one group saying it would pay no more than 1.5 billion, according to people close to the talks.The bank's executives defend their pricing."Properties never betray you," Banco 5. Popolare's chief executive, Pier Francesco Saviotti, told analysts in May. "When you have something that is reasonably good, you will never be let down...we don't want to sell out at a discount."Banco Popolare will now seek to sell small packages of loans and even single properties.Elsewhere, UniCredit is trying to sell its debt- collection unit together with 4.4 billion of gross bad loans; the proceeds of the sale of the debt collector are earmarked to cover losses on the debt, people familiar with the deal say.But the figures quoted for the debt have been low so far. A person familiar with the deal said at least one investor was considering an offer of just 500 million only for the bad-loans package, or just 11% its face value, far below previous deals.Meanwhile, Monte dei Paschi, which counts a quarter of its loans as sour, tried for about six months to sell about 2 billion of gross bad loans. But in the end, it was able to sell just 500 million, containing 12,000 secured and unsecured loans, to Fortress. LA PRELIOS DI CAPUTI VENDE HARBURG CARRE PER 37,4 MLN E MANTIENE LA GESTIONE DAILY REAL ESTATE Il primo giornale online del real estate italiano Venerd 4 luglio 2014 Prelios e Morgan Stanley vendono ad Amburgo Harburg Carre ceduto per 37,4 milioni, Prelios manterr la gestione Amburgo - Prelios Deutschland e Morgan Stanley Real Estate Investing hanno venduto lHarburg Carre di Amburgo a Erste Immobilien per37,4 milioni di euro. Prelios manterr comunque la gestione dellimmobile. Ledificio, interamente locato, offre 23.000 mq di superficie retail, uffici e residenziale, oltre a un parcheggio di 512 posti auto. 6. CAPUTI E SCORDINO STRINGONO ACCORDI CON SECONDCAP PER PRELIOS SGR ItaliaOggi 04/07/2014 pg. 38 Prelios sgr preferisce l'inglese Prelios sgr, la societ di asset management del gruppo Prelios, ha siglato un accordo con Secondcap, societ autorizzata dalla Fca a Londra che gestisce una piattaforma di transazioni sul mercato secondario dei fondi chiusi e riservati con un network di oltre 400 investitori internazionali, per incrementare la liquidit degli investimenti nei fondi immobiliari privati che ha in gestione. Abbiamo sviluppato una partnership innovativa, ha spiegato Paolo Scordino, a.d. di Prelios sgr,che ci permette di aprire un canale privilegiato per i nostri clienti, in grado di rendere pi liquidi i loro investimenti. Poter accedere a un mercato pi dinamico signi ca poter cogliere maggiori opportunit per valorizzare gli investimenti in tempi pi rapidi. Grazie a questo accordo, Secondcap metter a disposizione la sua piattaforma di investitori internazionali e i suoi servizi di supporto a condizioni agevolate a esclusivo vantaggio dei quotisti dei fondi riservati gestiti da Prelios sgr, che possono cos incrementare la liquidit delle loro quote e valorizzare i propri investimenti. 7. PRELIOS SGR CON CAPUTI E SCORDINO CHIUDE CON SECONDCAP LINTESA SUI FONDI MF - Maria Elena Zanini - 04/07/2014 pg. 16 ed. Nazionale Prelios sgr, intesa sui fondi con la piattaforma Secondcap Accordo importante per Prelios sgr: la societ del gruppo immobiliare Prelios attiva nell'asset management ha siglato una partnership con Secondcap, societ che gestisce una piattaforma di transazionisul mercato secondario dei fondi chiusi e riservati con una rete di oltre 400 investitori internazionali. In base all'accordo Secondcap metter a disposizione la propria piattaforma ai quotisti dei fondi gestiti da Prelios sgr, i quali potranno incrementare cos la liquidit dei propri investimenti. Da parte sua Secondcap entrer nel mercato immobiliare italiano accedendo a uno dei principali portafogli di fondi real estate (dal valore di circa 3,7 miliardi di euro) e allargando la base dell'offerta per il proprio network di investitori. Per Paolo Scordino, amministratore delegato di Prelios sgr, quella con Secondcap una partnership innovativa: Poter accedere a un mercato pi dinamico significa poter cogliere maggiori opportunit per valorizzare i propri investimenti in tempi pi rapidi e riducendo i costi di transazione.