Italian listed property company Risanamento has confirmed earlier media reports that it has received a letter of interest from an unnamed potential buyer regarding its landmark Santa Giulia mixed-use development project in Milan. The exclusivity period runs until the end of May, it added.

According to news agency Reuters, Risanamento's Santa Giulia project has received a non-binding offer from a consortium led by Stefano Stroppiana, businessman and Chief Executive of Premium Retail, and including the Shanghai Super Ocean Re fund, the construction groups Cogeim spa, Geo Holding srl, as well as entrepreneurs Di Veroli and Santo Versace. The offer is for a total of EUR 1.2 bn to be paid partly in cash partly through the assumption of corporate debt.

If successful, the offer envisages the foundation of a new company headed by Stroppiana, who would inject some EUR 25 mln in equity, while Super Ocean would participate with an EUR 100 mln investment, and the other investors would plough a total of EUR 35 mln. Banca Leonardo is advising on the deal.

Designed by Norman Foster, the Milano Santa Giulia development comprises almost 1 million m2, mostly for residential, office, and retail use.

Risanamento has had a tough ride over the past three years. The company formerly led by Luigi Zunino was forced into a large restructuring and the sale of its key assets, including the Falck area which last year was divested to a consortium of investors led by Italian businessman Davide Bizzi for EUR 405 mln.