The real estate arm of Italian industrial conglomerate Pirelli launched a Bulgarian subsidiary, with banking group UniCredit taking a minority stake in the joint venture.
The new company, Pirelli RE Bulgaria, will focus primarily on residential real estate, investing both in new construction and acquisitions.
In addition to asset management and other services, Pirelli RE plans to work on joint projects with other big-name investors.
By linking up with UniCredit Bulbank, Bulgaria’s biggest lender, it hopes to draw customers by offering its services packaged with those of the bank.
The two corporations are already working together in Poland, where Pirelli’s joint venture with Bank Pekao manages assets of over 300 000 square meters after just one year of operation.
Pirelli RE is one of the biggest real estate companies in Italy with assets in excess of EUR 14,5 B.
Last year, it decided to expand its activities internationally, acquiring a German company and starting operations in Poland.
It now has decided to expand to the European Union’s two newest member states, Bulgaria and Romania, launching operations there within days from each other.
Despite the construction boom in recent years, demand for new housing and office space remains high in Bulgaria, while profit margins are still substantially higher than in Western Europe.