Italian real estate company Risanamento will discuss the sale of two building development sites in Milan with Dubai's Limitless, part of Dubai government investment firm Dubai World.

Risanamento said in May it had had strong interest from international investors in its projects, after its loss widened in 2007 to nearly 92 million euros from 8.7 million in 2006, with the property market slowdown biting into its business.

Limitless had expressed interest in buying the Falck site to the north of Milan and Santa Giulia in the southeast. 

'The board (of Risanamento) decided to pursue talks in further detail on all aspects of the proposal,' Risanamento said in its statement.

The Italian company said in March its property portfolio had a market value of 5.5 billion euros.  It has a market capitalisation of around 212.3 million euros. Its shares had been suspended in early trading after a newspaper report of the talks with Limitless.

By 1307GMT, they were indicated up 37 per cent at 1.06 euros.  Sovereign wealth funds like Dubai World have been looking to western European economies to invest their funds, which have been enriched by record oil and commodity prices.  Italy has so far seen relatively little of this investment.-Reuters