FONT-SIZE Plus   Neg

FT: Blackstone To Take Control Of SocGen Property Loans

Private equity giant Blackstone Group, LP (BX) is set to take control of commercial property loans worth 100 million euros owned by French lender Societe Generale SA (SCGLY.PK,SCGLF.PK), the Financial Times reported Sunday.

According to the FT report, the deal is likely to close within weeks and would perhaps be the most significant sale by Societe Generale as it works to reduce its exposure to real estate.

Societe Generale, like its peers across Europe, is trying to reduce its exposure to the real estate sector.

In mid-February, Societe Generale reported an 89 percent plunge in profit for the fourth quarter, weighed down by losses from its investment banking business. During the quarter, the company reduced its sovereign debt exposure to Greece, Italy, Ireland, Portugal and Spain - collectively called GIIPS countries - by nearly two-thirds.

On the other hand, Blackstone is seeking to grow its real estate business. In December 2011 Royal Bank of Scotland Group plc (RBS.L, RBS) signed a deal with Blackstone to manage a fund of 1.4 billion pounds of commercial real estate loans.

SCGLY.PK closed Friday's trading at $6.58, up $0.19 or 2.97 percent on a volume of 114,681 shares. BX closed trading at $15.30, down $0.04 or 0.26 percent on a volume of 4.08 million shares.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Large U.S. companies are holding trillions of dollars overseas in an effort to avoid U.S. taxes, with big-name firms like Apple (AAPL), Pfizer (PFE) and PepsiCo (PEP) named as notable examples. This is the claim made by a pair of non-profit groups, who released a study based on the firms' financial statements. Software maker Adobe Systems Inc. (ADBE) Tuesday detailed an outlook for the full year 2016 indicated to miss Wall Street estimates, sending its shares down 8 percent in after-hours trading. Adobe expects full-year 2016 revenues of about $5.7 billion and an adjusted earnings of $2.70 per share. Analysts... Enterprise software maker Adobe (ADBE) provided updated guidance on Tuesday, predicting strong growth over the next three years by giving 2016 projections that are below what market analysts are currently expecting.
comments powered by Disqus
Trade BX now with 
Follow RTT