RBS cuts back scale of loan disposal to Perella Weinberg

Portfolio being sold to private equity firm shrinks from €400m to €150m

Royal Bank of Scotland is selling a smaller portfolio of Spanish loans to Perella Weinberg than it originally came to the market with.

Perella Weinberg has agreed to buy a batch of loans with a face value of €150m. It was thought that the private equity firm would buy €400m of non-performing loans at a significant discount.

The size of the sale was cut following the foreclosure of an asset that backed a large loan in the portfolio. In addition, RBS withdrew some other loans.

Morgan Stanley is helping RBS to offload €1.2bn of Spanish assets, mostly asset-backed loans and other positions, as well as some corporate debt. It excludes Santander’s headquarters.

Besides the tranche Perella Weinberg is involved with, there are a further two tranches, each with a €400m face value. RBS is trying to sell one of these to sponsors, apparently with little success.

RBS is also trying to sell a portfolio of Nordic properties that it foreclosed on. Meanwhile, the list of bidders still involved in the bank’s sale of a £1.6bn UK loan book extends to about 10 or 12.

The bidders are thought  to include Perella Weinberg, Morgan Stanley, Blackstone, BlackRock, Cerberus and  Lone Star. Lazard is advising RBS on  the disposal. Lloyds Banking Group plans to follow suit with the sale of a £1.1bn portfolio (see below).

Lloyds on course to offload £1bn of debt

Lloyds has approached potential buyers for a portfolio of 25 to 30 UK commercial property loans with a nominal value of £1.1bn.

The bank said it had managed to shrink its commercial property book last year by £5.5bn to £78bn.

However, Bradford & Bingley looks likely to pull the plug on the wholesale disposal of a £500m loan book it had mandated Pricewaterhouse-Coopers to gather offers for.

Bids were called in December, but the bank may now consider selling the loans individually  after receiving strong interest in certain parts of the book.

UBS is thought to be selling two of the seven European loans it is marketing to Mount Kellett. On offer are six whole loans and one mezzanine loan, backed by property in Germany, the Netherlands and Finland. One asset, a hotel, is in the UK.