New York-based Perella Weinberg is in talks to acquire around €300 million of loans from Royal Bank of Scotland as the government-controlled bank seeks to trim the size of its property book.
The deal, which is close to being agreed according to Sky News, comes as RBS reported a 2010 loss of £1.3 billion (€1.5 billion; $2.1 billion) today and detailed how it had reduced its property portfolio.
The group’s loans and advances to the property and construction sectors reduced by £12 billion last year, the bank said, primarily in the UK and Europe in both its development and investment portfolios.
RBS was just one of two banks today to say how it had cut its commercial property lending portfolio last year. Eurohypo, the German bank, revealed a full year loss of €785 million today compared with €515 million in 2009 and said it had cut its portfolio by €3 billion to €72 billion. It wants to reduce that figure to less than €60 billion by the end of 2012.
Though it has sold €3 billion of loans, Eurohypo stressed it remained active in issuing new loans. In 2010, the bank made €5 billion of new loans split evenly between Germany and the core foreign markets. Almost half of the new commitments abroad were made in the UK. Additionally, Eurohypo has extended existing commercial real estate loans amounting to around €6 billion, it said, providing the market with financing of approximately €12 billion in total.
The Financial Times reported earlier this week how RBS was marketing a £1.6 billion package of legacy loans, with Lone Star Funds said to be among those invited to bid for the portfolio codenamed ‘Project Monaco’. The Spanish portfolio has been dubbed ‘Project Campeon’.