the MICHELANGELo fund

The Fund, reserved exclusively for qualified investors, began its investment activities on 10 December 2001 with subscribed assets equal to a 105 million euros in value.

The share value of the Michelangelo Real Estate Fund, as of 31/12/09 is equal to € 192,067.079.

The following table shows how the Fund has increased in value since 31/12/2001

  Value of Fund N° of shares Unit Value 6 month Var. % Annual Var. %
Start up 105,000,000 1,050 100,000.000    
31 December 2001 114,259,088 1,050 108,818.180   8.82
30 June 2002 119,903,241 1,050 114,193.560 4.94  
31 December 2002 124,633,868 1,050 118,698.920   9.08
30 June 2003 128,410,945 1,050 122,296.140 3.03  
31 December 2003 135,953,021 1,050 129,479.070   9.08
30 June 2004 143,180,865 1,050 136,362.730 5.32  
31 December 2004 149,633,530 1,050 142,508.120   10.06
30 June 2005 153,865,617 1,050 146,538.683 2.83  
31 December 2005 161,308,253 1,050 153,626.908   7.80
30 June 2006 166,004,471 1,050 158,099.496 2.91  
31 December 2006 185,411,878 1,050 176,582.741   14.94
30 June 2007 195,712,806 1,050 186,393.148 5.56  
31 December 2007 198,678,451 1,050 189,217.573   7.16
30 June 2008 205,475,256 1,050 195,690.720 3.42   
31 December 2008 196,176,509 1,050 186,834.770   -1.26
30 June 2009 192,274,174 1,050 183,118.261 -1.99  
31 December 2009 201,670,433 1,050 192,067.079 2.80

On January 29th the Board of Directors of Sorgente SGR determined the share value of the Michelangelo Fund as of December 31st 2009 in the amount of €192,067. With this last report the Michelangelo Fund, launched in December 2001 as the first Italian real estate fund exclusively reserved for institutional investors, has reached the end of its 8 year duration. The annual return earned since the launch of the Fund is 8.43%, well above the minimum target return established in the management regulation at 6.5%. The liquidation of the Fund, initiated in 2009, is underway and will be completed within February 2010; in fact, Sorgente did not require the 3 year extension provided for by the laws which regulate the Fund. The Michelangelo Fund reported assets worth €201,670,000 at closing, nearly double compared to the €105,000,000 raised from investors at the end of 2001. The results achieved were made possible by an investment strategy strongly focused on unique and highly prestigious buildings, combined with prudent management and innovative vision. It was the first fund to invest abroad, acquiring interests in some of the world’s most prestigious buildings like the Flatiron Building and the Chrysler Building in New York. The Chrysler Building was purchased in 2005 for $ 430,000,000 and re-sold after only 3 years for $800,000,000. The constant attention towards “trophy” buildings has led the Michelangelo Fund to assemble a unique collection of buildings, which the shareholders were not willing to let go. The portfolio of the Michelangelo Fund has consequently been conveyed into the Michelangelo Two Fund, with which Sorgente aims to achieve new and more ambitious target values for its shareholders.