logo
Share SHARE
FONT-SIZE Plus   Neg

FT: Blackstone To Take Control Of SocGen Property Loans

Private equity giant Blackstone Group, LP (BX: Quote) 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
Fortune has once again named Google Inc. (GOOG, GOOGL) as the best company to work for, with Twitter Inc. (TWTR) also joining the annual list for the first time. This is for the sixth time and for the fourth consecutive time that Google has ranked No.1 in the Fortune's annual list of "100 Best Companies... Dunkin' Donuts has agreed to remove a whitening agent called titanium dioxide, commonly a source of nanomaterials, from all powdered sugar used in its donuts. The move follows pressure from advocacy group As You Sow, which put a shareholder proposal asking Dunkin' to reduce the risks of using nanomaterials in its food products. Warren Buffett's Berkshire Hathaway is reportedly planning its first ever European bond sale of 3 billion euros to take advantage of low interest rates in the region, traversing a path taken by a range of home companies in search of cheap funding options. The move comes as the European Central Bank's bond-buying stimulus program of 60 billion euros a month is imminent.
comments powered by Disqus
RELATED NEWS
Trade BX now with 
Follow RTT