RBS is working on a "pioneering" strategy to reduce the number of distressed commercial property investment assets on its books.
The Royal Bank of Scotland (RBS) is working on a "pioneering" strategy to shed
commercial development assets acquired before the recession.
RBS holds around £194 billion of non-core funded assets and wants to reduce this figure dramatically, with around 26 per cent of the value being made up of commercial property.
Chief executive Stephen Hester is looking at a "whole range" of options for the assets, many of which are distressed following the recession and a 45 per cent fall in property values.
One of the plans under consideration is the sale of £2-3 billion of commercial property loans.
JP Morgan analyst Harm Meijer told the Daily Telegraph: "As [is] well known, the real estate sector faces a giant de-gearing process.
"As such, any effort to speed up or tackle this problem is welcome, while we continue to hope that the listed sector will play an active role in this."
RBS announced last week that it plans to shed around £15 billion of distressed commercial assets each year.
Posted by Tess Nelson.
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