GE Units, Pirelli Buy CRE-Secured Portfolio

Two GE units and Pirelli RE have acquired a 1 billion euro (about $1.33 billion) commercial-real-estate-secured portfolio of nonperforming loans in Italy from two ABN Amro subsidiaries.GE plans to act as the majority partner in the operation, with Pirelli RE holding a 35% stake. GE Corporate Finance Bank provided bridge funding for the transaction and Pirelli RE plans to act as the servicer and asset manager for the loan portfolio. The partners have signed an exclusive mandate with one of the ABN Amro subsidiaries, Banca Antonveneta, for the acquisition of additional nonperforming loan portfolios expected to come to market in 2007, for a gross book value of approximately 5 billion euros (approximately $6.64 billion).