Prodea’s answer about the Picasso Fund and Italian real estate

As already mentioned in the annual financial report for the year 2019 and in the semi-annual financial report of June 30, 2020, “The Company constantly evaluates the optimal management of the group’s real estate portfolio, including a possible sale if market conditions are favourable; in this context, the possibility of selling the holding investment inthe subsidiary Picasso Fund is being examined.”

To this end, PRODEA is currently cooperatingwith specialized advisors for the exploration of the market interest and the executionof a possible transaction, which is estimated to be concluded by the end of 2020.

Once the explorationprocess reaches a binding agreement, the Company will proceed, as required, to the necessary announcements to investors, in accordance with the relevant legislation.

Picasso Fund owns 13 properties (mainly offices and retail) in Italy, the market value of which as of June 30, 2020 represented 9.3% of the total market value the real estate portfolio of Prodea group. Also, in terms of total assets, Picasso Fund represented as of June 30, 2020 8.7% of the total assets of Prodea group