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MILAN, June 12 Italian real estate company
Prelios forecast on Thursday a near halving of its
debts to 200 million euros ($272 million) by the end of 2016 as
it pursues a disposal programme.
The company, whose debts totaled 388 million euros as of
December 2013, manages properties in Italy and Germany but has
been hit hard by writedowns on real estate investments in its
recession-hit home market.
Prelios, which plans to continue selling real estate
co-investments as it did in previous years, is refocusing on
activities including asset management, distressed debt and real
estate valuations, which it collectively terms its "service
It aims to focus entirely on these businesses by the end
2016 and expects operating profit from its service platform to
grow by 40 percent by the end of 2016.
In 2013, the group's operating profit, or earning before
interests and tax (EBIT), was 6.3 million euros.
Prelios had also announced earlier this year it was in talks
with U.S. private equity fund Fortress for a possible
partnership in the areas of credit servicing, or debt
collection, and asset management.
"Negotiations are progressing," the company said in a
($1 = 0.7345 Euros)
(Reporting by Elisa Anzolin and Francesca Landini; Editing by