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RBS Unit Said to Plan Its First Commercial Property Sale in U.K.

Oct. 25 (Bloomberg) -- Royal Bank of Scotland Group PLC is seeking to sell a portfolio of U.K. warehouses valued at about 65 million pounds ($105 million) in what would be the first U.K. commercial property sale by its distressed asset unit, two people with knowledge of the matter said.

West Register, an RBS unit that takes over or buys properties in foreclosure, appointed broker Jones Lang LaSalle Inc. to sell the 28 warehouses throughout the U.K., said the people, who asked not to be identified because the information is private. A sale at 65 million pounds would generate a yield of 9.5 percent, one of the people said.

Erfan Hussain, a spokesman for Edinburgh-based RBS, declined to comment. No one authorized to comment at Jones Lang was immediately available.

RBS has shrunk its balance sheet by more than 900 billion pounds since its state-funded bailout in 2008 and the amount of assets the bank plans to sell or wind down declined to 45 billion pounds at the end of the second quarter from 258 billion pounds. Industrial properties and other commerical real estate assets outside London are gaining appeal as investors look for returns that beat the U.K. capital.

Property Week reported the news earlier today.

To contact the reporters on this story: Patrick Gower in London at pgower@bloomberg.net; Gavin Finch in London at gfinch@bloomberg.net

To contact the editor responsible for this story: Ross Larsen at rlarsen2@bloomberg.net

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