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Italian property developer Risanamento confirmed on Thursday that it has received a letter of intent from the Dubai fund Limitless for the purchase of its vast redevelopment of the Falck steel factory in Sesto San Giovanni, and its large redevelopment plan in Milano Santa Giulia.

In a statement, Risanamento said that it has decided to continue the negotiations in order to analyse all the aspects of the proposal carefully. It added that it will inform the market opportunely about any further progress on the matter.

Last week, the Italian company said that a leading Dutch property group specialised in the development of shopping centres had also shown interest in a partnership to develop the 100,000 m² of commercial space at Milano Santa Giulia. A company spokesperson told PropertyEU that the Dutch company 'could be Multi Development'. The Falck site has a book value of some EUR 300mln, but market experts say it could fetch as much as EUR 700mln.

Risanamento, which is headed by Luigi Zunino, put up to EUR 1bn of assets on the market in May to help improve its debt situation, which at the end of 2007 stood at EUR 2.5bn. Last week the company said it had hired Cushman & Wakefield to market the sale of the 90,000 m² Sky complex located in the south of the Santa Giulia project, adding that it would appoint an international broker shortly to sell the 660 Madison Avenue building in New York, which comprises 24,000 m² of primarily office space.

Limitless, the global real estate arm of Dubai World, approached UK property company Minerva last month with a bid believed to be around £240mln.