RBS £1.4bn property loan sale may fail

4th Oct 2011 07:44

"A £1.4bn deal between Royal Bank of Scotland and Blackstone to rid the bank of some of its troubled property loans may fail, robbing the industry of a template for similar transactions," three sources said, according to Reuters.The deal, code named Project Isobel, required debt funding from third parties of about 60% and was part of a move by RBS to reduce its estimated £80bn property exposure.Blackstone was unable to arrange debt funding from banks including Goldman Sachs, Citi and HSBC for the deal on terms that would make it attractive, the source said.AB