Royal Bank of Scotland has agreed to sell two buildings in Frankfurt and Berlin to Axa Investment Management, according to news agency reports.
Bloomberg says the properties are valued at about €790m ($1bn), according to people who were happy to disclose private information so long as their names were kept secret. Axa made the purchase on behalf of Norges Bank Investment Management, Norway's $650 billion sovereign wealth fund, one of Bloomberg's sources said yesterday.
Banks are seeking to offload property and cut back on under-performing property loans as they strengthen their balance sheets in preparation for Basel III regulations, which will impose stricter capital requirements on lenders.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Cash-rich pension funds and insurance companies, on the other hand, are happy to invest in assets which provide a steady income stream.
-
What happens if you can’t pay your tax bill, and what is "Time to Pay"?Millions are due to file their tax return this Friday as the self-assessment deadline closes. Though the nightmare is not over until you pay the taxman what you owe - or face a penalty. But what happens if you can't afford to pay HMRC your tax bill, and what is "Time to Pay"?
-
What does Rachel Reeves’s plan for growth mean for UK investors?Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
