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Italy's ailing property services firm Prelios has granted exclusivity to local investment firm Feidos regarding a potential capital injection which would strengthen the company's finances.

In a statement, Milan-based Prelios said its board of directors met to examine the two rival offers received by Feidos and the UK arm of US asset manager Fortress Investment Group and decided to grant an exclusive period of negotiation to Feidos until 12 November.

'Both the main lenders and the agreement signatories have expressed in writing their readiness to support a transaction aimed at the re-launch of the industrial growth prospects and at the strengthening of the group,' it said.

Prelios announced last month that it was in talks with two rival bidders offering to invest in the loss-making Italian real estate company, in a deal which will also involve its creditors and its controlling shareholders.

According to market rumours, Feidos Investment has put EUR 150 mln in cash on the table, while Fortress is believed to be planning a EUR 100 mln capital injection, consisting of EUR 50 mln in cash and another EUR 50 mln in assets. In Italy, Fortress is already active through an asset management unit, Torre sgr, as well as a credit servicing business, Italfondiario.

Prelios had EUR 11.7 bn in assets under management at end-June 2012. The Milan-based listed property services firm saw net loss widen to EUR 126 mln in the first half of 2012 from a EUR 500,000 profit in the same period last year. The huge earnings drop was due to a combination of writedowns on its property and non-performing loan portfolio and restructuring expenses.