Commercial property fund worth £1.4bn to be managed
Royal Bank of Scotland is handing over management of £1.4 billion of UK commercial property loans to Blackstone Real Estate Debt Strategies.
The bank said the agreement - part of RBS's disposal of non-core assets - was reached after a competitive tendering process.
Blackstone are taking a 25 per cent equity stake in the fund meaning RBS will still be able to receive potential future profits while also reducing exposure and risk.
Bruce Van Saun, RBS chief financial officer, said: "The proposed partnership with a world-class fund manager such as Blackstone marks an important step in our non-core strategy to manage and dispose of our commercial real estate loan portfolio.
"This is an innovative agreement that allows RBS to tap into the liquidity in the market, to reduce our risk over time and to benefit from the possibility of upside in the portfolio."
Michael Nash, chief investment officer at Blackstone, said: "We think this innovative structure could serve as the model for future transactions as banks look to dispose of non-core real estate assets."