Italian listed property developer Risanamento reported fresh losses in 2011 but said its operating result returned into positive territory for the first time since the onset of the credit crisis.
Italian listed property developer Risanamento reported fresh losses in 2011 but said its operating result returned into positive territory for the first time since the onset of the credit crisis.
In a statement on Friday, the debt-laden developer said its net loss narrowed to EUR 75.5 mln in 2011, from EUR 83 mln a year before, largely as a result of cost reductions and de-leveraging measures. Operating result swung back to the black, to EUR 21 mln from a negative EUR 13.5 mln at year-end 2010.
Milan-based Risanamento, which has been selling large chunks of its portfolio in a bid to repay its debt, said talks with a bidding consortium led by businessman Stefano Stroppiana on the divestment of its flagship Milano Santa Giulia project collapsed after the group failed to present a formal offer by the deadline of year-end 2011. It remains unclear whether the group will look for a new buyer.
Designed by Norman Foster, the Milano Santa Giulia development comprises almost 1 million m2, mostly for residential, office and retail use.
In 2010 Risanamento sold the Falck development site to a consortium including Bi & Di Real Estate and Korean group Honua Investment Management for EUR 405 mln. The company's portfolio is currently valued at just over EUR 2 bn.
