Share Dealing
Blue Chip Bulletin: RBS offloads property assets
Joe McGrath, 23 March 2011
Royal Bank of Scotland has confirmed the sale of a group of Spanish property loans and assets to the Perella Weinberg Real Estate Fund.
The deal has been valued at £249.2 million (€286 million) with the transaction conducted purely in cash.
RBS has been keen to accelerate the disposal of assets within its non-core division and by 31 December 2010, overall funded assets in the division had already reduced to £138 billion from the original funded asset base of £258 billion.
Beneficiaries of the assets within the Perella Weinberg fund are indirect SPV subsidiaries Grey Grafton SARL, Violent Grafton SARL and Orange Grafton SARL.
In the summer of last year RBS’s head of non-core assets said impairments from commercial property assets were likely to remain high, particularly in Ireland.
Commercial property equated to 24 per cent of the division at its inception in December 2008.
Today’s news comes just two days after Barclays sold 30 property assets including sub-ordinate notes and commercial mortgage and mezzanine finance loans for £360.4 million (US $0.59 billion).
RBS was advised on the sale by its own global banking and markets division.
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