Sorgente Sgr | Michelangelo Fund

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MICHELANGELO FUND

The Michelangelo Fund, for which capital was raised in December 2001, was the first Italian real estate fund reserved to institutional investors.

Michelangelo started its investment operations on December 10th 2001, with a subscribed equity of €105 million and an initial unit value of € 100,000.

The Michelangelo Fund was liquidated on February 15th 2010. The unit value upon liquidation was €194,161.567, approximately double the value subscribed in 2001. The compound annual return from start-up was 8.44%, well above the minimum-yield objective of 6.5% set by the management regulations.

The following chart summarizes the increase in value of the unit share of the fund beginning on December 31st 2001:

	Fund Value	N° of unit shares	Unit value	Var. % sem.	Var. % ann.
Start Up	105.000.000	1.050	100.000,000
December 31st 2001	114.259.088	1.050	108.818,180		8,82
June 30th 2002	119.903.241	1.050	114.193,506	4,94
December 31st 2002	124.633.868	1.050	118.698,920		9,08
June 30th 2003	128.410.945	1.050	122.296,140	3,03
December 31st 2003	135.953.021	1.050	129.479,070		9,08
June 30th 2004	143.180.865	1.050	136.362,730	5,32
December 31st 2004	149.633.530	1.050	142.508,120		10,06
June 30th 2005	153.865.617	1.050	146.538,683	2,83
December 31st 2005	161.308.253	1.050	153.626,908		7,80
June 30th 2006	166.004.471	1.050	158.099,496	2,91
December 31st 2006	185.411.878	1.050	176.582,741		14,94
June 30th 2007	195.712.806	1.050	186.393,148	5,56
December 31st 2007	198.678.451	1.050	189.217,573		7,16
June 30th 2008	205.475.256	1.050	195.690,720	3,42
December 31st 2008	196.176.509	1.050	186.834,770		-1,26
June 30th 2009	192.274.174	1.050	183.118,261	-1,99
December 31st 2009	201.670.433	1.050	192.067,079		2,80
Liquidation	203.869.645	1.050	194.161,567

The net results attained were made possible by a use of capital aimed at highly prestigious buildings, combining a prudential approach with an innovative vision. It was the first Fund to invest abroad, becoming the owner of some of the most prestigious buildings in the world, including the Flatiron Building and Chrysler Building in New York, acquired in 2005 for $430,000,000 and resold after just three years for $800,000,000.

The constant focus on "trophy" real estate has led the Michelangelo Fund to accumulate a collection of unique objects that the subscribers decided not to divest. The Michelangelo portfolio was conveyed into Michelangelo Due, for which Sorgente has set new and more ambitious value enhancement targets for its unit holders.