Italian listed real estate developer Risanamento has signed the final agreement to sell the vast Falck development site in the Sesto San Giovanni outskirts of Milan for a price of EUR 405 mln. The agreement puts an end to nearly two years of negotations on the sale of the area to a range of investors.
Italian listed real estate developer Risanamento has signed the final agreement to sell the vast Falck development site in the Sesto San Giovanni outskirts of Milan for a price of EUR 405 mln. The agreement puts an end to nearly two years of negotations on the sale of the area to a range of investors.
Risanamento's subsidiary Immobiliare Cascina Rubina has signed the deeds with Sesto Immobiliare, representing a consortium of investors led by Italian businessman Davide Bizzi. The transaction price includes EUR 71 mln in cash and the transfer of EUR 345 mln in debt held by Immobiliare Cascina Rubina with bank Intesa Sanpaolo. The remaining EUR 60 mln will be disboursed after approval of the building permit and the project to drain the area.
The area was valued at EUR 256 mln at end-December 2009, Risanamento said.
Located in the Sesto San Giovanni area, the Falck project was designed by star architect Renzo Piano and will see the development of 1.3 million m2 of mixed-use space in Milan.
Risanamento signed a preliminary agreement in June this year, with completion expected for early October. The consortium is believed to include the Korean group Honua Investment Management, Consorzio Cooperative Costruzioni, Le Copains' Bandiera Group and a group of banks including Intesa Sanpaolo and Unicredit. The Milan-based company started negotiations in early 2010 after a planned sale to the Dubai fund Limitless for EUR 475 mln fell through in 2009.