Italy's Pirelli Real Estate has sold its stake in the Bicocca major redevelopment project to the real estate holding company of businessman Edoardo Caltagirone, for over EUR 60 mln. The Progetti Residenza project, part of a major regeneration in the northern part of Milan, was held in a 65/35 partnership with Deutsche Bank's RREEF funds, according to Italian news agency Radiocor.

Italy's Pirelli Real Estate has sold its stake in the Bicocca major redevelopment project to the real estate holding company of businessman Edoardo Caltagirone, for over EUR 60 mln. The Progetti Residenza project, part of a major regeneration in the northern part of Milan, was held in a 65/35 partnership with Deutsche Bank's RREEF funds, according to Italian news agency Radiocor.

On completion, the scheme will offer 50,000 m2 of residential space, 45,000 m2 of social housing and 12,000 m2 of student accomodation as well as a 17,000 m2 extension of the Bicocca university. The operation allows Pirelli RE to exit the direct real estate development sector.

Pirelli RE booked a net loss of just under EUR 21 mln for the first six months of this year, a number larger than expected due to property writedowns. The Milan-listed group had EUR 15.6 bn of assets under management at the end of the review period compared with EUR 16 bn at end-December 2009.