logo
Share SHARE
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
Federal Aviation Administration said several pilots complained about pointing of strong green laser beams at planes flying over Long Island. The location was around Farmingdale, during 9.30 pm and 10 pm. Searches are on to locate the exact source of the laser beam. The Federal official suspects that the beam came from a hand-held device. Discount retailer Big Lots, Inc. Friday reported an increase in income from continuing operations for the first quarter, from last year. The company also registered a surge in net income particularly as it had carried a loss from discontinued operations last year. Taco Bell, a division of Yum! Brands Inc, is planning to test delivery of food items on college campuses, the Street reported. The move comes at a time the fast food chain seeks to leverage demand for its popular breakfast and dinner items.
comments powered by Disqus
RELATED NEWS
Trade BX now with 
Follow RTT