Royal Bank of Scotland is poised to book a loss of several hundred million pounds after being forced to take back the keys on £1.8 bn (EUR 2.1 bn) in German properties bought by a fund run by Morgan Stanley, according to an unconfirmed report in the Financial Times.
Royal Bank of Scotland is poised to book a loss of several hundred million pounds after being forced to take back the keys on £1.8 bn (EUR 2.1 bn) in German properties bought by a fund run by Morgan Stanley, according to an unconfirmed report in the Financial Times.
The paper claims the deal, brokered at the peak of the market, has generated one of the largest paper real estate losses so far for a UK bank. The properties are believed to be located primarily in the Rhine-Main and Berlin areas.
The bank’s global restructuring team is overseeing the process and is expected to hold on to the properties until they have regained some of the value lost.
