The Municipality of Florence is seeking to sell EUR 500 mln worth of real estate in an attempt to free funds for investment in infrastructure. The disposal has already been approved by the city council, and is awaiting the final go-ahead by a council of municipality advisors.

'The disposal is not a way to restore our finances. In fact the proceeds will be re-invested in infrastructure projects,' said Matteo Renzi, mayor of Florence.

Major properties in the portfolio are the former Meccanotessile factory, which is to be converted into new apartments, gardens and services. The old fruit and vegetable market Mercafir is also due to be redeveloped to house the City of Taste, a large market place for high-quality consumables. The portfolio also includes several offices and apartments, former schools, bars and clubs.

'We want to sell real estate that is no longer of strategic importance, and which is part of inner-city regeneration projects, while simultaneously using the proceeds to finance new investments', Renzi added.

As part of the plan, the city will also divest the vast majority of its offices in the city to concentrate its activities in one new office building, the Multiplex in Novoli. Renzi: 'The municipality currently occupies 46 buildings across the entire city.' The municipality's historical headquarters at Palazzo Vecchio will be retained.