RBS completes property deal to finance Dutch takeover

by Richard Kilner

Story link: RBS completes property deal to finance Dutch takeover

The Royal Bank of Scotland has made a deal to sell 63 of its properties, located throughout the UK, for £800m.

Amongst the properties being sold is a branch in Edinburgh’s West End, on 1 Princes Street, which the RBS will lease from the buyer and continue operating its branch from.

Other properties include a number in London, such as a branch in the West End (Cavendish Square), and RBS private banking operation Coutts’ headquarters located on the Strand.

The property portfolio is believed to being sold to a Prudential and William Pears.

The sales have occurred due to the RBS’ desire to raise capital to finance the bank’s joint takeover of Dutch bank ABN Amro.

The adverse market conditions are thought to be the cause of the price for the properties being lowered from an initial expected price of £900m.

Despite this lower-than-hoped-for price some analysts take a differing view, citing the fact that a large property deal can go through in the present market conditions as a sign that the credit crunch does not prevent real estate deals, even on a big scale, taking place.

A number of similar property deals have been abandoned of late, including British Land’s attempt to sell off Meadowhall Shopping Centre.