Search
 

Billions for Sale

RBS’ mega-loan sale shows that the big guns will play a big role is dispositions.

By Tony LoPinto | Updated on February 22, 2011

Billions for Sale I was traveling back from the UK yesterday morning, picked up a copy of the Financial Times for the plane ride back, and found a cover story reporting that the Royal Bank of Scotland is moving ahead with a $2.5 billion sale of “unwanted” legacy commercial real estate loans. But that’s apparently only the tip of the iceberg. According to the article, the bank is sitting on $70 billion of real estate loans could be sold or “wound-down” by 2014. The numbers are staggering for one institution. However, the most interesting news reported was that the bank is only inviting a “small” number of private-equity groups to play in the bid process. Among the names mentioned were Lonestar, Blackstone and Starwood Capital. The bank’s reasoning is that they want firms to play that have the experience, and balance sheets, to manage large portfolios of debt. If RBS is an indicator, it appears that the disposal of the mega billions of commercial real estate loans may be controlled by the big guns. Stay tuned.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.