The real estate portfolio that comes with the deal comprises 71properties, covering a total area of 309,000 sm. Just more than 90%of the assets are located in the region of Lombardy, northernItaly, and of this more than 70% are in central Milan. It producesan annual rental income of around euro 24 million ($30.41 million).Nearly a third of the property is vacant.

Beni Stabili says the commercial assets are under-rented andoffer substantial scope for active management. The company isseeking an eventual 5.3% return on the deal. Beni Stabili intendsto sell the portfolio's housing and plans to build its propertyportfolio to a value of more than euro 4 billion ($5 billion) by2008.

A Beni Stabili statement adds it had carried out the acquisitionthrough its wholly owned subsidiary BS Immobiliare. Beni Stabilifunded the acquisition of Comit's real estate assets through a euro725-million ($921-million) loan provided by a pool of banks withItalian banking group SanPaolo IMI as lead arranger, Banca Imi asmandated lead arranger and Banca Antonveneta as joint mandatedarranger. The remaining financial resources were provided via BeniStabili liquidity assets.