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Italian property developer Risanamento has reached a preliminary agreement on the sale of its vast Falck redevelopment project located in Milan's Sesto San Giovanni district to the Dubai fund Limitless.

The Italian company said the transaction, which is conditional to approval by market authorities, values the project at around EUR 475 mln, of which around EUR 250 mln will be paid at the closing of the transaction and the rest within 12 to 24 months.

Debt-laden Risanamento confirmed in July that it had received a letter of intent from Limitless for the purchase of its Falck project as well as its large redevelopment plan in Milano Santa Giulia. The group, which faces EUR 2.6 bn in debt, put up to EUR 1bn of assets on the market earlier this year to help improve its debt situation as it struggled to refinance its credit facilities.

According to Italian financial newspaper Il Sole 24 ore, Risanamento has a loan of EUR 260 mln from Intesa Sanpaolo on the Falck area, which will be transferred to the new owner. The group was also granted a medium-term EUR 726 mln loan from Hypo Real Estate and Ca' de Sass for the Milano Santa Giulia project, of which EUR 170 mln have already been used.