A joint venture of UK investor Chelsfield Partners and the Saudi Olayan Group is on the verge of acquiring Risanamento's office portfolio in France.

A joint venture of UK investor Chelsfield Partners and the Saudi Olayan Group is on the verge of acquiring Risanamento's office portfolio in France.

The investment volume will be in the region of €1.2 bn.

Risanamento, the troubled Italian developer, confirmed on Friday that it is accepting the offer presented by the two investors for its entire portfolio consisting of nine offices in Paris.

Chelsfield is controlled by Qatar Holding, the Olayan Group, the Bank of East Asia and the family interests of Elliott Bernerd and Sir Stuart Lipton.

The company focuses on UK commercial real estate and the deal would represent its first foray outside its home market.

The Olayan Group is a private Saudi conglomerate.

Milan-listed Risanamento mandated Bank Leonardo & Co. last summer to sound out investors' interest in its portfolio of French office assets.

Risanamento's Paris properties represents some 50% of its total portfolio and account for a total of 76,700 m2 of offices. Major properties include 50 Avenue Montaigne, which was bought in 2005 from Unibail-Rodamco for €233 mln as well as the Actualis mixed-use building, bought at the market peak in 2006 from Financière Pinault for €230 mln. The office and retail scheme provides 20,000 m2 of space at the corner of Rue de la Chaussée d’Antin and Boulevard Haussmann.

The assets are largely located in the prime Triangle D’Or area and generated €12.3 mln of rents in the first three months of the year. At end-2012, Risanamento's French properties had a market value of €1.05 bn and debt of €757 mln.

Chelsfield Partners and the Olayan Group will now carry out due diligence on the assets to be finalised by end-February 2014. If completed, the deal will generate some €280 mln of cash for Risanamento once debt is repaid.

Chelsfield Partners declined to comment on the deal.

Heavily-indebted Risanamento has been trying to sells assets for months. Last year, the company divested 118 Avenue des Champs-Elysées in Paris to Pramerica Real Estate Investors for €135 mln. The deal price was nearly 30% higher than the property's latest appraised value at year-end 2011.

Risanamento bought the seven-storey property at end 2006 for €92 mln, funding the deal with a €60 mln loan from Eurohypo.