Banca Piccolo Credito Valtellinese Sc : “Bernina Social Housing” fund promoted by the Creval Group and CDPI SGR (Cassa...

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"BERNINA SOCIAL HOUSING" FUND PROMOTED BY THE CREVAL GROUP AND CDPI SGR (CASSA DEPOSITI E PRESTITI GROUP) LAUNCHED INITIATIVE WILL TURN INCOMPLETE AND/OR UNSOLD REAL ESTATE COMPLEXES INTO SOCIAL HOUSING SELECTED PRELIOS SGR TO MANAGE THE FUND

Milan - Sondrio 29 December 2015 - CDP Investimenti SGR S.p.A. ("CDPI SGR"), through its fund Fondo Investimenti per l'Abitare ("FIA") and Credito Valtellinese Group ("Creval Group"), subscribed Bernina Social Housing, the new fund for the renovation and redevelopment of real estate initiatives associated with non-performing loans disbursed by the Creval Group (the "Fund") to create social housing.

Bernina Social Housing has been established by Prelios SGR ("Prelios SGR"), the fund manager selected by Creval Group to structure and manage the initiative. The Fund will be dedicated exclusively to investments in real estate - owned by Creval Group customers holding loans disbursed to developt real estate projects which failed and that are currently incomplete and/or unsold - to be used in residential building initiatives for the benefit of the weakest segments of our population in the territories in which Creval operates.

The Fund, which duration has been set at 25 years, was subscribed in full on a cash basis by the FIA - which may hold up to 80% of the outstanding units - and by the Creval Group. The Fund's objective is to collect EUR 100 million. The first closing took place today for an amount of EUR 25 million, part of which, namely EUR 15 million, was subscribed by FIA and EUR 10 million by Creval.

The majority of the properties (at least 50%) will be subject to rent control, while the remaining part of the portfolio to be acquired by the Fund, will be rented out with a purchase option at 8- 10 years and only a small extent will be allocated for immediate sale as subsidized housing.

For a few months now, Prelios SGR has been working on analysing and selecting the Fund portfolio, which also involves examining the corporate and capital characteristics of the real estate owners.

"For the Creval Group, this initiative fits into a broader set of activities aimed at managing problem loans, which works alongside the strategic partnerships recently launched with Cerved for the management of bad loans and with Yard Credit Management for the management of real estate mortgages classified as unlikely to pay", noted Miro Fiordi, the bank's managing

director. "At the same time, this transaction is fully in line with the Creval Group's principles of social responsibility which aims at supporting its reference communities".

"For CDP Investimenti SGR, this is the third initiative in the group of social housing funds activated by FIA in partnership with Banking Groups. These are dedicated platforms which, in compliance with the investment criteria set forth in the FIA Regulation, have the advantage of taking action with respect to properties already built or at an advanced stage of completion, and therefore with a faster time to market and without using additional land. The role of the asset management company managing the Fund is fundamental for the selection of transactions that are more in line with this objective and to carry out the necessary due diligence and structuring activities", stated Paola Delmonte, Director of Social Housing of CDP Investimenti SGR. "The Bank's role is just as important in supporting both the Fund, during the initiative sourcing phase, and the tenants and final purchasers of the properties".

"The management of bad loans held by banks through a social housing initiative that meets the real housing needs of the communities involved, represents an innovative approach to solving a range of problems", explained Paolo Scordino, managing director of Prelios SGR. "This initiative also confirms our commitment in supporting leading institutional investors, including banks and public institutions, in identifying tailor-made solutions for complex real estate portfolios, through the creation and management of non-traditional products that combine ethical social, environmental sustainability and community redevelopment objectives, while aggregating resources and promoting investments which eventually can also contribute to the country's economic growth".

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