REG - Royal Bk Scot.Grp. - Sale of a Portfolio of Irish Real Estate Loans <Origin Href="QuoteRef">RBS.L</Origin>

NatwestAnnouncement

16/12/2014 07:47

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 1.1billion* 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 c1.2 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 c1 billion, the gross assets are c4.8 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 
+44 (0) 207 672 1758
Media
RBS Press Office
+44 (0) 131 523 4205
Ulster Bank Media Relations 
+353 (0) 1 884 7032
*  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.

This information is provided by RNS
The company news service from the London Stock Exchange
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