MILAN, April 1 (Reuters) - Italian real estate company Risanamento said on Tuesday a deadline for fund manager Idea Fimit to submit an offer for its Santa Giulia property development in Milan had expired without any agreement.
The sale of Santa Giulia is part of plans by the Milan-based company to raise funds to reduce its 1.8 billion euros ($2.5 billion) of debt.
In a statement Risanamento said Idea Fimit was not able to raise the finance necessary for the transaction before a March 31 deadline.
The proposal from Idea Fimit foresaw the creation of a fund with fresh capital, into which the Santa Giulia assets, worth up to 700 million euros, would be transferred.
Risanamento was the biggest Italian real estate casualty of the credit crunch of 2009, when falling property prices and the end of easy bank lending made its debt burden hard to sustain.
It escaped bankruptcy when a court made Italian banks Intesa Sanpaolo and UniCredit convert part of its debt into equity to become its largest shareholders. ($1 = 0.7256 Euros) (Reporting by Francesca Landini; Editing by David Holmes)