Italian ailing property developer Risanamento has agreed the sale of two commercial properties in Milan to its creditor, Royal Bank Of Scotland (RBS), in a deal valuing the assets at over EUR 210 mln.

Under the agreement, Risanamento is selling Sviluppo Comparto 5 Srl, the owner of a building on Milan's main shopping street, Corso Vittorio Emanuele, as well as G.P. Offices & Apartments Srl, the owner of an office property in Milan's Galleria Passarella.

The transaction involves a cash sum of EUR 20 mln and the assumption of just over EUR 191 mln in debt provided by RBS to the Milan-based development firm. Closing is expected to take place by November 10, 2011.

Separately, Risanamento said it has finalised the sale of its 33% stake in the historic Badrutt's Palace Hotel in the centre of St. Moritz for EUR 24 mln. The buyer is Trimandre Sarl.

Listed on the Milan stock exchange, Risanamento owns property assets valued at nearly EUR 2 bn and posted a loss of EUR 37 mln in the first six months of this year.