RBS to relinquish control of property assets to Blackstone

published 20 December 2011

Royal Bank of Scotland (RBS) and private equity giant Blackstone Group are set to finalise a deal in which the British bank will relinquish control of 1.4bn pounds (2.17bn US dollars) of distressed property loans to the American group, a source familiar with the matter said on Monday, Reuters reports.

The above follows speculation earlier this year that a deal would not be reached because Blackstone was unable to arrange for the necessary financing, through debt, on terms that would allow it to structure a deal that would meet its criteria for returns on investments.