RBS commercial property sale highlights improvements in UK market | 25 October 2013
Royal Bank of Scotland (RBS) will sell off British commercial property assets for the first time since the onset of the recession.
The state-funded bank has already begun taking bids for the portfolio, which is thought to be valued around £63 million.
The move has been described as one of the clearest signs of improvement in the UK commercial property market.
Whilst RBS has sold off individual property assets during the recession, it has waited for improvements in the market before selling a bundle of assets at once. This was in the hope that the value of these assets would increase as the economy improves. The majority of the assets are expected to produce yields between nine and ten per cent.
It is believed that another bundled asset sale could follow soon after if this one goes smoothly.
Philip Marsden, who is a director for one of the bank’s selling agents Jones Lang Lasalle, believes that the bank has timed the sale brilliantly.
Speaking to ft.com, he explained: “Demand has improved significantly for off-prime and secondary assets, which deliver more yield than most types of investment at the moment.”
Propertyweek.com reports that a preferred bidder is expected to be named within a fortnight.
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.
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