Italian property company Pirelli Real Estate and bank Intesa Sanpaolo have sold their 50:50 facility management joint venture, Pirelli RE Integrated Facility Management.

The joint venture sold the business to compatriot facilities management company Manutencoop for €137.5m (£130m).

The sale will see Pirelli receive €68.75m (£65.4m) for its stake which will help it pay off its debts

The deal was welcomed by JP Morgan analyst Harm Meijer today who said: ‘We believe today’s disposal is a necessary transaction, in order to reduce its loan to value of 68% (compared to the 80% loan to value covenant).

‘However the price was about 20% below our estimates and we think that further action is needed. We are awaiting Pirelli’s three year business plan to be announced in February.’