Italy's leading property company Risanamento is putting a EUR 1 bn property portfolio up for sale as it struggles to refinance its debt. The property firm, which is headed by Luigi Zunino, has appointed banks Intesa Sanpaolo and Mediobanca to sell its trading portfolio consisting of 30 commercial assets in Italy and three in France. The Milan-based group expects the sale to take about 18 months. The company, which has a property portfolio worth some EUR 5.5 bn, said it is also in talks to sell two other assets located in Milan, Galleria Passarella and Corso Vittorio Emanuele. Risanamento purchased the properties last year for a total EUR 190 mln.
Italy's leading property company Risanamento is putting a EUR 1 bn property portfolio up for sale as it struggles to refinance its debt. The property firm, which is headed by Luigi Zunino, has appointed banks Intesa Sanpaolo and Mediobanca to sell its trading portfolio consisting of 30 commercial assets in Italy and three in France. The Milan-based group expects the sale to take about 18 months. The company, which has a property portfolio worth some EUR 5.5 bn, said it is also in talks to sell two other assets located in Milan, Galleria Passarella and Corso Vittorio Emanuele. Risanamento purchased the properties last year for a total EUR 190 mln.
The group's total debt stands at EUR 2.4 bn. The company saw its loss increase more than tenfold in 2007 as a result of unfavorable economic conditions worldwide. Net losses widened to EUR 92 mln in 2007 from EUR 8.7 mln in 2006.
'The changed market scenario, in addition to having strongly influenced the results, caused a situation of financial tension,' Risanamento said. Risanamento added it plans to reach an agreement with banks regarding a EUR 150 mln credit facility by April.
