Sale of a Portfolio of Irish Real Estate Loans

RNS Number : 8634Z

Royal Bank of Scotland Group PLC

16 December 2014

 



16 December 2014

Sale of a portfolio of Irish real estate loans

The Royal Bank of Scotland Group plc (RBS) announces today the agreement to sell a portfolio of Irish real estate loans to an entity controlled by Cerberus.

At completion, RBS will receive cash consideration of up to £1.1 billion* at current exchange rates. Completion is expected in the first quarter of 2015. The sale proceeds will be used for general corporate purposes.

The transaction, which represents RWA equivalent of c£1.2 billion as at 30 September 2014, is part of the continued reduction of assets in its RBS Capital Resolution division and is in line with the bank's plan to strengthen its capital position and reduce higher risk exposures.

The carrying value of the loans is c£1 billion, the gross assets are c£4.8 billion and generated a loss of £0.8 billion, principally impairment provisions, in the year to 31 December 2013.

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For further information:

Investors Richard O'Connor Head of Investor Relations [phone]

Media RBS Press Office [phone] Ulster Bank Media Relations [phone]

*        The parties have agreed a list of matters requiring remediation that affect certain of the loans sold.  This list will be finalised prior to completion.  A portion of the consideration equal to 30% of the value of any loans so identified will be deferred pending and subject to remediation of these matters within a period of six months following completion.

 

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