The management board of listed Italian real estate developer Risanamento has approved the sale of the Falck development site in Milan to Bi & Di Real Estate for EUR 405 mln. In a statement, Risanamento confirmed that it has received an offer from Bi & Di on behalf of a consortium of the Korean group Honua Investment Management, Consorzio Cooperative Costruzioni, Le Copains' Bandiera Group and a group of banks.
The management board of listed Italian real estate developer Risanamento has approved the sale of the Falck development site in Milan to Bi & Di Real Estate for EUR 405 mln. In a statement, Risanamento confirmed that it has received an offer from Bi & Di on behalf of a consortium of the Korean group Honua Investment Management, Consorzio Cooperative Costruzioni, Le Copains' Bandiera Group and a group of banks.
The transaction price of EUR 405 mln involves around EUR 125 mln of equity and EUR 280 mln of debt. This compares to an estimated value of EUR 450 mln.
The closing of the transaction is conditional on approval by one or more banks for the financing of the site. Under the agreement, the buyers will pay 90% of the amount by September, with the balance due after completion of the project, slated for December 2012.
Located in the Sesto San Giovanni area, the Falck project was designed by star architect Renzo Piano and will see the development of 1.5 million m2 of mixed-use space in Milan.
Last year, the Milan-listed developer aborted talks with Dubai's sovereign wealth fund Limitless to sell the site for EUR 475 mln. At the time, Risanamento, which also owns the Milano Santa Giulia project, was on the verge of bankruptcy after a state prosecutor put forward a request to declare the real estate developer bankrupt.
In November last year a Milan court gave the long-awaited go-ahead for the restructuring of the company, ruling that a EUR 500 mln debt restructuring programme and the issue of EUR 350 mln of convertible bonds would enable the company to remain afloat.