Italian real estate company Risanamento said on Thursday it will start exclusive talks with fund Idea Fimit for the sale of the huge Santa Giulia development area on the outskirts of Milan.
In a statement, the company said exclusive negotiations will last until February 15.
Risanamento was the biggest Italian real estate victim of a financial crunch in 2009 when falling property prices and the end of easy lending made its large debt hard to sustain.
The board of Risanamento met on Thursday to review two offers for Santa Giulia, one from Idea Fimit and the other from real estate asset manager Hines Italia Sgr.
The proposal from Idea Fimit foresees the creation of a fund with €60-80 million of fresh capital, into which the Santa Giulia assets, worth €650-700 million, would also be transferred, people familiar with the matter told Reuters on December 12.
Shares in Risanamento, which have risen 70% over the last twelve months, ended 5.1% higher at €0.172 on Thursday.